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Gasoline prices in the United States fell to a national average of $4.605 on Thursday, with GasBuddy’s Patrick de Haan saying we should see that drop below $4 per gallon by mid-August.
"Americans will spend $165 million LESS today on gasoline than a month ago," according to de Haan. "We're on target for the national average to drop to $3.99 by Aug 14,” he added.
On Twitter, de Haan said Thursday that “we have a shot at setting the largest single day decline … in the last decade”, noting that the national average “rarely” moves down this much per day.
Thursday’s national average of $4.605, based on AAA prices, was down from Wednesday’s $4.631.
A month ago, the national average at the pump was $5.016. Since then, prices have dropped some 9.8%.
Thursday’s gasoline national average represents the lowest price since mid-May.
Falling gasoline prices come as fears of recession and another large interest rate hike pull crude oil prices down.
Demand for gasoline in the United States has fallen due to soaring prices.
According to the Energy Information Administration’s (EIA) latest Short-Term Energy Outlook, U.S. gasoline demand for July will drop 2.2% from the June forecast and 4.8% from pre-pandemic July 2019. Overall, U.S. gasoline demand is now expected to be lower than the EIA had earlier forecast for the months of July through October.
In its short-term outlook published on July 12th, the EIA forecast that gasoline prices will average $4.05 per gallon in 2022 and $3.57 per gallon in 2023, with diesel averaging $4.73 in 2022 and $4.07 in 2023.
On Wednesday, de Haan, speaking about the consecutive declines in gasoline prices, said “We may see the trend last a fifth week, as long as oil prices remain cooperative and don’t surge beyond $105 per barrel, and as long as refinery production of gasoline remains strong.”
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com