The average price of retail diesel has dropped to a record low — under $2 a gallon for the first time in 12 years, and gas is currently around $1.72 a gallon.

The prices are tied to a huge supply of diesel and a warmer winter, according to the Energy Information Administration analysit Sean Hill.

The near future of the oil market is expected to involve a return to stability after a period of wide fluctuation, according to Goldman Sachs Group Inc.

They are calling the near future of oil “trendless.” Prices will swing up and down between $20 a barrel and $40, possibly dipping down into the teens, until a price is found at which supply and demand are brought back into balance.

The “trendless” period is expected to last 6-9 months, according to the experts.

By Andy Stern
Sources: TTNews, Bloomberg