U.S. gasoline prices are heading lower and could average below $3 per gallon in half of the U.S. states by the end of this month, as crude oil prices tumbled this week and demand is expected softer, Tom Kloza, global head of energy analysis at the Oil Price Information Service (OPIS), has told Reuters.
Currently, the national average price of a gallon of regular gasoline is $3.768 as of October 5, according to AAA data. That’s lower than $3.835 a gallon a week ago. Gasoline futures, meanwhile, have fallen to $2.216.
With falling wholesale prices, U.S. consumers will soon see more relief at the pump, analysts say.
“While the trend is likely to be a strong one to the downside, small issues here and there could temporarily delay the onset of lower prices, but for now, motorists need not be in any rush: lower gas prices are on the way for every U.S. state in the weeks ahead,” Patrick De Haan, head of petroleum analysis at GasBuddy, said at the beginning of this week.
According to AAA’s analysis from Thursday, “The decline in pump prices accelerated a bit since last week, with the national average falling seven cents to $3.76. The primary culprits are slack demand and the falling cost of oil, which has shaved more than $10 and is hovering near $82 per barrel.”
“Drivers are finally seeing some relief at the pump as the seasonal swoon picks up momentum,” said Andrew Gross, AAA spokesperson.
“At least one state has locations selling gas below $3 a gallon, and we should begin to see more states join in over the next few weeks.”
GasBuddy’s De Haan noted on Thursday that the data from the fuel-saving app shows the national average is now at its lowest level since July.
“I expect October will be filled with treats in the form of falling #gasprices for motorists in every state,” De Haan said. As of now, the bottom for the national average is $3.20/gal, but that target could likely move, he added.
OPIS’s Kloza told CNN on Thursday that the national average could drop to as low as $3.25 a gallon by Halloween.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.