Marta Lavandier / AP
In the US, the price of a gallon of regular gas is less than $ 5 – more than a year ago, but this is the first time the weekly national average has fallen in nine weeks.
That average is now $ 4.98, according to AAA.
The recession does not signify a rapid reduction in the low price of 2021, but market experts say drivers may see a modest decrease in the coming weeks.
How low can gas prices be?
Average gas prices may drop below $ 4.90 next week, GasBuddy analyst Patrick De Haan said.
The biggest change last week is that the financial markets are digesting the Federal Reserve’s move to raise its benchmark interest rate by 0.75 percent, a steep rise that has fueled concerns about the recession. Crude oil prices fell sharply after that announcement – which saw US oil production reach its highest level in two years.
Consumer demand has fluctuated, drivers juggling two competing sentiments: the sting of record-high prices and the urge to travel more than the last two epidemic-cramped summers.
De Haun welcomes summer road-trippers The latest is the future “The national average may fall to $ 4.55- $ 4.75 / gal in the next few weeks unless trends change.”
Several dominant factors can change perspective
Oil production is rising, but refineries are struggling to keep up with demand. Lack of refining capacity in the US is seen as a major challenge to bring down prices, and that will not change as soon as the US shifts away from fossil fuels.
“My personal view is that another refinery will never be built in the United States,” Chevron CEO Mike Wirth said last week.
Crude oil prices are expected to remain volatile because of the Russian invasion of Ukraine and sanctions against Russia by Western nations, which have disrupted energy markets around the world.
Even the thirst for oil remains unexpected. AAA recently reported a slight drop in consumer demand. But many stations heading to Gasbuddy de Haan over the weekend of the Juneteenth have slashed prices. Reported that US gas demand rose more than 9% Friday.