Analysts have expected the prices of crude oil to go down for months now, yet they keep going up. Will motorists ever be able to afford important things such as an auto warranty and maintenance again? Crude oil prices had a considerable decline early in the year, however the hope is not just that the price will make demand go down, but that the amount of non OPEC production delayed will hopefully catch up late in the year and into next year. The market will soon continue with production, which will cause prices to drop.

The investment of the oil companies are based on around $55-$75 per barrel of oil. If you look at history, that is still very valuable oil. That’s what we are going to see, and gas prices will drop. However, the question on everyone’s mind is when.

Consumers shouldn’t expect price drops to be dramatic until late in the year. Gas prices will likely rise and peak throughout the nation at about $3.50 per gallon. However, motorists could see significant relief late in 2008 as new production is evident online.

There are a few things working in favor of lower gas prices. Ethanol will displace a large part of the demand for gas since it will be taking 10% of gas out of the picture. Also, prices won’t be up an enormous amount from years past, just about a percentage point. However, this isn’t the beginning of the $4-$5 per gallon apocalypse for gas. Never fear, motorists will be able to afford such things as used car warranties and maintenance again.