The current price of gas has been sustaining the low prices of gasoline set over the past few years, leaving people questioning what is the average price of a barrel of crude oil, since, in the past 12 years, the prices of oil and natural gasoline have been declining.
With this outlook, people are speculating the gas prices in the future are going to be optimistic. So unless you’ve got Deion Sanders money and are planning on competing with Nick Cannon’s net worth in 2017, you probably are somewhat considered about gas prices and how they can affect your life.
However, recent forecasts have asserted the opposite in their gas price predictions in the next 5 years which is why knowing the forecast for the energy market tomorrow, can help you benefit from it today.
Can Gas Prices in the Future be Consistent with the Current Price of Gas?
With the current price of gas hitting a 12-year low, many consumers are left wondering if the gas prices in the future will still follow the same trend with the current price of gas.
In the past years, the cost of fuel has been steadily declining, eventually hitting its lowest for 2017 and with this trend, people are expecting prices for such commodities will continue to drop, if not, maintain the price proportionality with the inflation rates.
The thing is, the prediction is for gas prices in the future to rise since this commodity is said to have reached its lowest as reflected by the current price of gas.
With the price of gallons of gas expected to increase in the future, it is imperative for consumers like you to know the current average price to help you benefit from it.
Factors that Influence the Average Price of a Barrel of Crude Oil
The average price of a barrel of crude oil may vary, especially since there are several factors which can impact its prices depending on what the latest trends on pricing are.
The supply and demand concept still applies for this commodity, especially since there are several drivers of barrel prices of crude oil which include:
1. Supply Availability
a. National, local and company issues being faced by the suppliers.
b. The number of providers on the market.
c. Output freeze implemented by the Organization of Petroleum Exporting Countries (OPEC) which can lock and hold supplies.
2. Demand from the Market
There are additional factors which can impact the average price of gas, and with the current events happening in the world, gas price predictions for the next 5 years are not as “optimistic” for consumers as they are today.
Gas Price Predictions for the Next 5 Years
Trends in commodity trading between OPEC and Non-OPEC stakeholders are indicating despite a 12-year decline in gas prices; the next 5 years will experience a surge of rising prices per gallon because the oil supply is expected to be outstripped by the production of it.
The current gas prices are low because of the ample supply of gas, in addition to a low number of consumers demanding it.
In the long run, the amount is predicted to be outnumbered by the demand, which is why customers are advised to watch out for the driving influences on gas prices and make sure they use it to their advantage.