Gas prices could drop even lower amid an excess in oil supply.
Consumers in the United States are already paying less at the pump this summer than they were a year ago, and could see more savings as supply is expected to accelerate in the next year.
The U.S. is fueling the surge in output, and increases by Brazil and Norway are expected to help, according to the Wall Street Journal.
A change in sanctions on Iran and Venezuela could also lift supply. The Organization of the Petroleum Exporting Countries and other producers have put constraints on output to try to balance the market.
“Some of the constraints on capacity could come off if geopolitical events change, on top of the potential growth,” said Darwei Kung, a portfolio manager at the DWS Enhanced Commodity Strategy Fund. “That’s one of the reasons we’re a little bit concerned about what the increase might mean to the global balance.”
