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Report: Gas Prices May Be Set To Drop

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(AP Photo/Toby Talbot)

(AP Photo/Toby Talbot)

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MIAMI (CBSMiami) – Each year as Memorial Day weekend approaches, gas prices soar. This year has been especially tough as average prices have hit $4 a gallon in Miami. But things may be about to change.

According to theHill.com, analysts believe that prices may have peaked in the last few weeks. According to AAA, gas prices have declined over the last five days. That’s the first decline in prices seen since December 2011.

“What this could potentially mean for motorists is that prices could take a bit of a breather or they might fall,” said Patrick DeHaan, senior petroleum analyst at gasbuddy.com told The Hill.

For President Barack Obama, any drop in the gas prices will be welcome news to his re-election campaign. Republicans have sought to blame Obama for the high gasoline prices saying he hasn’t done enough to expand domestic production.

However, analysts agree that the President has very little ability to do anything to lower the gas prices. Instead it’s controlled by speculators in the oil markets and any sort of world tensions in the major oil producing regions.

For example, analysts say that if tensions with Iran continue to escalate, it will only serve to exacerbate the current gas prices.

A report issued by the Energy Information Administration said gas prices may not drop significantly just yet. The report predicted $3.95 a gallon gas peaking in May at $4 a gallon nationally.

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