Gas prices poised for third weekly decline ahead of busy holiday travel weekend
U.S. motorists are spending less to fill up than last week and the week before, with gas prices poised for a third consecutive weekly slide as crude costs drop.
The national average on Thursday stood at $4.86 for a gallon of regular, down more than 8 cents from a week ago, according to AAA. Worries about the rising risk of a global recession has reduced demand for oil, with the price of crude falling to around $107 a barrel from $110 last week, the travel club noted in a news release on Monday.
"The cost of oil accounts for nearly $3 for every $4.89 at the gas pump. Consumers should find more relief when fueling up if oil prices drop further," AAA spokesperson Andrew Gross said in a statement.
RBOB gasoline now down nearly 25c/gap, if the market closed at this level and stations immediately passed it on, the national average would likely be in the ball park of $4.39/gal. Plenty of room for #gasprices to fall further.
— Patrick De Haan ⛽️📊 (@GasBuddyGuy) June 30, 2022
Gas prices "will keep falling" and are headed for a third weekly drop, Patrick De Haan, head of petroleum analysis at GasBuddy, tweeted.
Nice 10-20c/gal drop in spot #gasprices today will keep the national average heading lower for a third straight week… still no rush to fill up… prices will keep falling!
— Patrick De Haan ⛽️📊 (@GasBuddyGuy) June 29, 2022
Still, the relief could be short-lived, as any abrupt changes to supply could quickly reverse the downward trend, he cautioned.
"There is still risk that prices could go up and reach new records, mainly if there is a hurricane or some other such unexpected event that shuts down oil or refining production. That's a worry amid what's turning out to be a pretty brisk summer for demand," De Haan told CBS MoneyWatch.
The national average for regular unleaded gas hit a record high just above five bucks a gallon on June 16, spurring increased interest in fuel and gas cards as Americans hunt for ways to fill up for less.