Gas prices around the United States are approaching their lowest summer levels in four years. This positive trend is giving drivers much-needed relief as the hectic summer travel season gets underway. As of Thursday, the national average price for a gallon of gas is $3.16. That’s almost a 10% decrease from this point last year and it’s not a coincidence, AAA says.
To spell it out, OPEC+ has drastically increased its oil production. These production increases have more than covered the seasonal uptick in demand for oil. According to analysts, gas prices should be relatively flat at their current levels for the rest of the summer. There is a risk that prices will fall further still. Some analysts are even predicting that the national average price for a gallon of gas will drop below $3 by September.
Once again recent upheaval in the Middle East led to spike in crude oil prices. As of this summer, they’d dropped back down to where they were before the conflict started. Aixa Diaz, an analyst at AAA, observed the relationship between pump prices and crude oil prices.
“Most of what we pay at the pump is in direct correlation to the price of crude oil.” – Aixa Diaz
Over the past few weeks, gas prices have started to come down as crude oil prices have leveled out after sharply increasing in response to geopolitical tensions. This decline has given even more relief to consumers right as we enter the peak summer travel season.
Even President Donald Trump has recently bragged that gas prices fell below $2 per gallon in Alaska, Arkansas, Louisiana, Mississippi, and New Mexico. Yet, independent monitoring service GasBuddy didn’t find a single location selling gasoline at that price. Industry expert Patrick de Haan was incredulous at the prospect of the President’s claim holding any water.
“This does not pass the sniff test.” – Patrick de Haan
As summer progresses, drivers can expect continued affordability at the pump, thanks to a combination of factors including increased supply and stable crude oil prices. These trends mean good news for consumers as they head into the vacation season and take summer road trips.
