A Purdue agricultural economist is projecting gasoline prices will remain low this summer.
Wally Tyner says there’s usually a bump in price for the summer months, but an industry surplus has kept crude oil around $50 a barrel.
“What that did is it gave the U.S. shale oil producers enough profit margin to increase their production,” he says. “Their costs have fallen 30-percent in the last three years.”
Tyner says the increase in shale oil production – now up to 600,000 barrels a day – should balance out OPEC’s 1.2 million barrel cut by the end of the year.