At $3.65, gasoline prices in early July are the highest since 2008 when the price was close to $4.10, according to WEX Inc. The good news is most experts predict prices to slowly fade for the remainder of July.
Iraq — which saw large swaths of its territory fall into the hands of radicals in June — spooked traders into pushing crude prices near $110 per barrel; however, market conditions were not as bad as they seemed, says WEX. While still volatile, the situation doesn’t appear as bleak as when the city of Mosul fell on June 20.
Crude prices have fallen closer to $100 per barrel and wholesale gasoline prices have seen drops, says WEX. Hurricane fears are still a few weeks away and are generally bullish for prices when they head toward the Gulf Coast.
While stronger in the summer, overall demand is still down from its peak in 2007 by roughly 6%, according to WEX. Market-watchers believe the national average could fall below $3.50 per gallon by the end of the month.
Meanwhile, diesel prices are around $3.90 per gallon. Experts believe prices will remain steady for the remainder of the summer and could see its usual seasonal hikes in September, says WEX.