Average Gas Prices Should Stop Climbing after Six-Year High

Jul 08, 2014 11:34 AM EDT | Jordan Ecarma

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Good news for drivers: Gas prices seem to have peaked after reaching the highest average for Fourth of July since six years ago.

As prices on crude oil and wholesale taper off, gas costs for 2014 should stop rising, USA TODAY reported.

"These prices are a bit excessive, in my view,'' said Tom Kloza, senior energy analyst for gasbuddy.com, as quoted by USA TODAY. "I think we'll drift a bit lower--with the occasional small bounce--from now until Labor Day. After Labor Day, we should see a return of sub-$3 a gallon prices" for gas in the South, Rocky Mountains and Midwest areas of the U.S.

Gas costs an average of $3.65 a gallon around the country. The price is down from $3.67 during the Independence Day weekend; however, it is up from a year ago, when drivers were paying an average of $3.47 per gallon.

According to gasbuddy.com, the recent uptick in average gas prices cost consumers $38.7 billion for the month of June, an increase of 36 percent compared with the $28.3 billion they spent in June 2009.

Crude oil prices reached a three-week low thanks to diminishing conflict in Iraq and a strong supply, Yahoo Finance reported.

But despite an improved outlook on crude oil costs, "It takes almost no scare at all to push oil prices up $5 or $10 bucks a barrel," said Yahoo Finance columnist Rick Newman. "That just tells you that the supply-demand equation is still pretty tight, we just got a little bit of slack in the last few days."

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