Gas Prices May Have Already Seen Their Summer Peak, New GasBuddy Analysis Shows
Written by
Josephine Nesbit
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Nicholas Morine
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U.S. motorists may finally get some relief at the pump this summer.
U.S. gas prices fell for the first time in four weeks, dropping 0.8 cents from the previous week to $3.64 per gallon, according to GasBuddy data. Nationally, prices are up 22.8 cents per gallon from a month ago but 46.4 cents lower than a year ago. Diesel prices are also lower, dropping 3 cents over the last week to $4.12 per gallon.
“For the first time in several weeks, the national average price of gasoline has seen a decline, and while the fall was quite small, the bigger news may be that we may have seen a short-term peak for the price of gasoline,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
De Haan said gas prices typically peak in May and June, but the oil market is weakening, and we may have already seen the summer peak in prices. “While it’s possible we could go higher later this summer should a major hurricane target sensitive infrastructure, it appears the odds that the national average will miss the $4 per gallon mark are rising. It’s certainly looking optimistic for motorists.”
Gas demand took a hit earlier this month as domestic gasoline stocks increased slightly. Combined with lower oil prices, AAA indicated this typically pushes pump prices down.
Data from Gas Buddy showed a barrel of West Texas Intermediate crude oil was down $5 per barrel on April 24 from $81.99 per barrel the Monday before. Brent crude oil was tracking alongside WTI, down $4 per barrel week-over-week. Bob Yawger, executive director of energy futures at Mizuho, told CNBC that the biggest reason we see weakening is fear of recession.
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