MILWAUKEE -- It's not just the temperatures that are falling.
The price of gasoline is plummeting to the lowest per gallon in 12 years, especially in the upper Midwest. Some analysts are even predicting $0.99 gasoline becoming a strong possibility as wholesale gas prices plunge amidst growing supply.
GasBuddy reports that nine states in the nation are currently witnessing the lowest average gasoline prices since early 2004: Oklahoma ($1.37), Indiana ($1.45), Kansas ($1.46), Ohio ($1.47), Michigan ($1.49), Minnesota ($1.52), Wisconsin ($1.54), Illinois ($1.57) and North Dakota ($1.63).
“As gasoline supply continues to bulge, prices continue to shrink,” said Patrick DeHaan, senior petroleum analyst for GasBuddy. “Wholesale gasoline prices in the Midwest have lost more than half of their value since the beginning of the year and prices at the pump haven’t fully reflected that yet."
Another reason for the glutton of oil - Canadian reserves.
DeHaan explains that Canada has a wealth of crude, but no real infrastructure to export it outside of the Great Lakes.