EIA’s Short-Term Energy Outlook: $750 Savings Per Household Possible in 2015
Gas prices are at a near six-year low, with the national average dropping an astonishing 46 cents over the course of the last month to $2.117 a gallon. With gasoline as cheap as it was in the days where The Dark Knight was the hottest movie on the planet and GM was the fourth biggest bankruptcy case in US history, it’s reasonable for drivers around the country to expect a fair amount of savings in terms of fuel costs in 2015.
How much, you ask? According to the US Energy Information Administration’s Short-Term Energy Outlook, about $750 in savings for the average American household.
According to the STEO, the EIA predicts that Brent crude oil will maintain an average cost of about $58 a barrel for 2015, but that it will rise considerably to an average of $75 a barrel in 2016. Retail regular gas prices are expect to hang around $2.16 a gallon for the first quarter of the year with an expected full-year average of about $2.33 a gallon. The average should increase to about $2.72 a gallon in 2016.
As Bloomberg points out, low prices have led to an increase in demand. Gasoline consumption is expected to rise to 9 million barrels in 2015, despite the EIA’s December projection that demand would decrease in the New Year.
The Short-Term Energy Outlook also projects that the price of diesel will drop to $2.85 a gallon in 2015 (down from $3.83 in 2014) and that the price of electricity will increase marginally from 12.5 cents per kWh to 12.63 cents per kWh.
News Sources: US Energy Information Administration, Bloomberg