Most predictions of gas prices — critical to in-country US travel — have been upward but could that be reversed?
Energy analyst Philip Verleger told Bloomberg TV that US drivers might see highly welcome $2.50-a-gallon prices by November.
Why? Two reasons.
The price of oil has fallen sharply due to overproduction in such major suppliers as Saudi Arabia. But another factor is less demand because of the European slowdown.
"Saudia Arabia really runs the oil market … and the Saudis right now have several reasons for essentially overproducing, or producing more than the market needs, and pushing prices down," said Verleger in an on Bloomberg TV.
The Saudis want to keep oil prices down to put pressure on Iran and Russia, Verleger said. They are angry with Iran over its nuclear program, and upset with Russia over its military aid to the embattled Syrian government, he said.
By David Wilkening
