U.S. gasoline prices could drop below $4 today

  • AAA: Monday gasoline prices in the United States slipped to an average of $4.059 per gallon.
  • Diesel will likely drop below $5 a gallon soon.
  • Gasbuddy: Gasoline prices have fallen for the eighth straight week.

U.S. gasoline prices could fall below $4 a gallon, Gas Buddy head of oil analysis Patrick De Haan said in a note on Monday.

Diesel will likely drop below $5 a gallon soon.

Gasoline prices fell for the eighth consecutive week, according to data from Gas Buddy.

“The national average is poised to fall back below $4 a gallon today as we see lower gasoline prices enter its eighth straight week. By the end of the week, one hundred thousand stations will be $3.99 or less,” De Haan said, adding that he’s even seen some stations price below $2.99 ​​a gallon.

Monday gasoline prices in the United States fell to an average of $4.059 per gallon, according to AAA data. This is 1 cent less than yesterday, 15.3 cents less than last week and 66.2 cents less than a month ago. Although this is a dramatic drop over the past month, the average price is still 87 cents higher than it was a year ago.

Crude oil prices were trending slightly higher on Monday, but have fallen significantly over the past week on market fears that we are headed for — or already in — a recession.

Despite fears that a looming recession and continued Fed tightening will eat away at crude oil demand, the fundamentals haven’t changed over the past week. Global refining capacity is shrinking, second-quarter U.S. shale reports indicate most companies lack aggressive production plans for the year ahead, and OPEC+ has issued a warning about its own shortage of capacity by stating last week that “the very limited availability of excess capacity requires it to be used with great caution in the event of a severe supply disruption”.

By Julianne Geiger for Oilprice.com

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