Landmark Iran Nuclear Program Deal Could Result In Lower Gas Prices
PHILADELPHIA (CBS) -- Remember those gas prices that went below $2 dollars in parts of our region earlier this year? After a spring and summer travel season uptick, they could make a comeback.
Tuesday's landmark deal on Iran's nuclear program may not seem like a big deal for the average American, but one result could be much lower prices at the gas pumps before the end of this year.
Right now, crude oil is currently trading at about half the price it was at this time one year ago, thanks to a global oil glut as production booms around the world.
Opec's output has been surging as it tries to keep up with other oil producers, even the United States, which hit a 44-year high for oil production in April.
In the wake of the nuclear deal, the lifting of sanctions imposed by the United States and Europe could eventually send as much as half-a-million barrels of Iran's oil per day flowing into the global market, helping to lower the price.
But that will take time. And that's one reason why most analysts don't expect American drivers to see the real savings until after Labor Day, with many parts of the country to see prices back below $2 dollars per gallon around December.
AAA says the national average price for a gallon of regular gasoline is currently more than 80 cents lower than one year ago.