Millions of Americans are in for a welcome relief at the gas pump this Memorial Day weekend. Although the price of crude (CLN16.NYM) has been on the rise in recent weeks, drivers are set to pay the lowest price for gasoline for the Memorial Day holiday since 2005.
Today’s national average for a gallon of regular gasoline is $2.32, up four cents per gallon over the past week and 16 cents higher per gallon on the month, according to AAA. The recent climb is a result of oil pushing back near $50 per barrel on declines in U.S. stockpiles, a reversal from earlier this year when prices tumbled below $27 a barrel. But taking a step back and looking at oil over the past several years, it's still well below the $100 per barrel level hit between 2010 and 2014.
So what’s ahead for crude and gasoline as we head into the summer driving season? Scott Shellady, SVP of Derivatives at TJM Investments, told Yahoo Finance’s Seana Smith that he thinks low prices are here to stay.
“The story is lower for a lot longer,” said Shellady. “We’re starting to see some cracks in Saudi Arabia. They might start to unleash more oil on the market… If they really need to start raising some capital and they really start flooding the market, I think that oil up around the $48 to $50 per barrel level is going to be hard to continue. I expect prices to be around $40 per barrel in August, and I think the new level we’re going to be between is $35 and $50 per barrel.”