President Trump says the gasoline prices will go down in 2019. Is this possible?


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Donald Trump, in one of his tweets, has suggested that gasoline prices could go even lower in 2019.

That could be a bit BOLT considering the national average close of 2018 at $2.24/gallon.

 

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TheGasBuddy, says that 42% of gas stations in the U.S. are selling gasoline for under $2 per gallon.
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Trump also tweeted  “Do you think it’s just luck that gas prices are so low, and falling? Low gas prices are like another Tax Cut!” He sure wanted to gain some credit here. Pointing to the  pressure the President exerted on OPEC over the year of 2018 to produce more oil when the price per barrel was already at $80.
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Saudi Arabia, the UAE, Iraq and Russia helped to bring oil prices down by increasing production, but the administration’s decision to give import exemptions to Iranian oil as new sanctions against Iran took effect in November also impacted oil prices, therefore gasoline prices, are plunging down.

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The BIG question is whether today’s low gasoline prices are likely to stay at the current level, or go lower, later in 2019. Typically gasoline prices are lower in the winter and gradually increase towards the summer months.
Obviously all circumstances are not likely to stay the same. The oil price has gone down by 24% from the beginning of 2018. We expect the gasoline prices to stay low at least for the first quarter of 2019. In April it is expected to kick in the cut from OPEC and Russia (1.2 million barrel/day)

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In 2018 we have witnessed an impressive drop of oil price by 24%. It is considered that oil prices are going to remain low for at list until the end of March 2019. In April, when the oil production cuts from OPEC and Russia kick in (1.2 million barrel per day) we may start seeing a steady increase of prices.On the other side GasBuddy’s analysts say that U.S. gasoline prices will average $2.70 in 2019, this is by 50 cents higher than today, but still, it is worth to mention that this is a tiny bit below the national average in 2018 (by 3 cents).

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What is going to actually be the highest U.S. average gasoline price in 2019?
What are your bets?
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Transport Digest

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