December 20, 2015 - 11:07 PM EST
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Gasoline prices fall to $2 a gallon

WASHINGTON, Dec. 20 (UPI) --

The price of gasoline dropped to a national average of $2 a gallon on Sunday, the Auto club said.

The $2 average is the lowest a gallon of gas has been since 2009. But even despite that six-year low, gas is being sold for even less in more than half of the country, the Oil Price Information Service determined. OPIS tracks gas prices for the Auto Club.

Falling gas prices are the result of falling crude oil prices, which is at its lowest point in more than five years. The oil glut, created mostly by the large boost in U.S. oil production, has pushed oil to $34.50 a barrel.

The price at the pump will end the year almost 80 cents lower than its peak in June. Prices have dropped 33 of the last 38 days, about 21 cents overall. The states with the lowest prices are South Carolina, Missouri and Kansas, with an average of $1.79 per gallon.

The only question is how long we stay below $2 -- is it days, weeks or months, Tom Kloza, chief oil analyst for OPIS told CNN. I happen to think that this will be something that persists into at least January.

All of which is a boost to holiday spending. Low gas prices has saved the average American driver about $540 this year or about $10 per fill-up, Kloza said. That has translated into about $130 billion in consumer spending.

The International Energy Agency predicts low prices to continue though 2016, due to a strong dollar, sluggish demand in Europe and Asia, and the coming lifting of economic sanctions from Iran, which will expand its oil production.

Source: United Press International (December 20, 2015 - 11:07 PM EST)

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