Oil prices are on the rebound today after losing nearly three dollars of their value over the last week. That recent drop in the price of oil is giving drivers some relief at the pump, especially after a recent jump in the average price of a gallon of gas of nearly 30 cents a gallon.
However, analysts say don't expect cheap gas anytime soon.
"We've been holding steady within a penny or so for the past couple of weeks," said AAA's Don Redman. "There's usually a lag time before you start seeing a dramatic drop at the pump. However, I would think that if the price of crude were suddenly to drop to $75 a barrel that we would see in many service stations--those service stations that have week-to-week contracts--you'll see them drop a lot quicker."
According to Redman, drivers could see savings more quickly if oil prices were to suddenly drop to $75 dollars a barrel. OPEC, Redman says, could rig the market to keep prices well above that mark.
"Will OPEC and those allied countries announce another cutback in production?" Redman asked, referring to the cartel's production cuts through the end of September.
Redman says that and any possible hurricanes in the Gulf of Mexico would cause more pain at the pump.
"We're in the throws of hurricane season, and things can change dramatically. Hopefully, we will continue to avoid any tropical storms this year, but we still got months to go before we're out of this."
According to AAA, the average price for a gallon of gas today is $3.43. In New Orleans, the average price is $3.37. Despite the recent price drops, Redman urges drivers to budget for $3.50 to $3.75 a gallon through the end of the year.
"All of us have noticed that prices will go up a lot quicker than they will go down," Redman said.
