Are the current gas prices here to stay- how low could they go this summer?

Image Flickr Chris Yarzab

According to GasBuddy, the most popular app that tracks real-time fuel prices at more than 140,000 gas stations in the United States, Canada, and Australia, 2,535 gas stations in the United States charged $3.99 or less per gallon on Thursday. However, the relief at the pump may not last long as gasoline futures rose by more than 7% today after rising by 11% in the previous five trading sessions.

Head of petroleum analysis at GasBuddy, Patrick De Haan said that after today’s sharp increase in oil prices, the national average could rise back to above $4.50. On Tuesday, the price of oil fell below $100 per barrel, indicating investor concerns about an economic recession and what’s known as “demand destruction,” or motorists buying less gas due to high prices. Gasoline futures which are contracts to buy gas at a specific price at a later date have also dropped significantly this week.

Recently, President Joe Biden called for the temporary suspension of the federal gas tax and demanded that gas station owners reduce the price at the pump to reflect what they pay.

While prices fell this morning, Patrick De Haan, head of petroleum analysis at GasBuddy, warned that after today’s sharp increase in oil prices, the national average could rise back above $4.50.

On Tuesday, the price of oil fell below $100 per barrel, indicating investor concerns about an economic recession and what’s known as “demand destruction,” or motorists buying less gas due to high prices. Gasoline futures which are contracts to buy gas at a specific price at a later date have also dropped significantly this week.

NBC San Diego, California reports “ The average price of a gallon of self-serve regular gasoline in San Diego County recorded its largest decrease since at least 2019 Friday, dropping 3.7 cents to $6.117, its lowest amount since June 1. The average price has decreased 23 consecutive days, dropping 25.6 cents, including 3.5 cents Thursday, according to figures from the AAA and the Oil Price Information Service. The streak of decreases follows a run of 19 increases in 20 days totaling 35.5 cents.” Source NBC



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