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.