By Laura Barron-Lopez - 12/18/13 09:48 AM EST
As gasoline supplies reach a two-decade seasonal high, U.S. gasoline prices are set to reach their lowest level of the year, Bloomberg reports.
Retail prices reached a 33-month low coming in at $3.179 a gallon in early November and are currently at $3.222, according to AAA. And wholesale gasoline markets are dropping from Chicago to Texas, meaning consumers will likely spend less at the pump through the New Year.
“We’re going to see significant increases in gasoline inventories the next few weeks,” said Andy Lipow, the president of Lipow Oil Associates LLC in Houston, who predicts gasoline will reach $3.15 by the end of the year.
“Refiners will maintain their high rates of utilization while demand declines toward its seasonal low in January and February.”
Colder bursts of weather keep drivers off the road, causing demand to drop by 525,000 barrels.