U.S. Oil Glut Could Mean Cheaper Gas Prices

Gasoline prices have risen 37 cents a gallon over the past month for a national average of $2.44 per gallon. Good news for gas consumers, experts are expecting oil prices to drop and therefore gas prices to follow suit. Here's why they think prices should soon be dropping.

The United States has been producing and importing an average of 1 million barrels of oil every day than it is consuming. That is leading to extra crude oil being stored to their highest levels in the past 80 years.

Ed Morse, head of commodities research at Citibank suggests that oil could fall as low as $20 a barrel from the current price of $50. He added that lower refinery production, seasonal factors and unexpected outages, could prevent a sharp decline in gas prices.

Other analysts also believe oil prices will drop but not as low as Morse suggested.