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January 1, Summer Gas Price Surprise: Discover Why You Might Save Big

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Americans may be in for a pleasant surprise this summer with gas prices predicted to drop 10% in the coming weeks. RSM chief economist Joe Brusuelas says this is due to easing domestic demand and supply conditions.

“Given a look at wholesale gasoline prices, there is room for domestic gasoline prices to decline another 10% from the current $3.44 per gallon,” he wrote. “This will surely bolster U.S. household balance sheets heading into the summer spending season.”

AAA reports the current average cost of a gallon of regular gas is $3.44, a 4% decrease from a month ago. Lackluster demand and burgeoning supply are expected to further impact gas prices.

“Gasoline demand has trailed 2023 for most of this year, and analysts believe economic uncertainty may suppress demand this summer,” said AAA spokesperson Andrew Gross. He questioned whether the typical robust summer driving season could be a thing of the past.

Falling gas prices will be a relief for Americans who have experienced constant price increases for over three years. Inflation, although decreasing from its peak of 9.1% in June 2022, remains above the Federal Reserve’s 2% goal.

Brusuelas believes dropping gas prices could lead to lower inflation readings, potentially supporting rate reductions later this year. “Falling gasoline prices damps topline inflation and that will support the case for rate cuts this fall,” he wrote.

The U.S. produces about 13.2 million barrels of oil per day, just below the record of 13.3 million in December 2023. Despite OPEC+ production cuts, non-OPEC producers like the U.S., Canada, Norway, and Brazil continue to bring new supply to the market.

“In our estimation, the risk is that there is more supply to market on the way, and that implies lower oil and gasoline prices heading into the end of the year,” Brusuelas said.

As our loyal readers, we encourage you to share your thoughts and opinions on this issue. Let your voice be heard and join the discussion below.

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4 Comments

4 Comments

  1. Mark

    June 24, 2024 at 7:30 pm

    These guys are lying. More driving during the summer months means an increased demand. A decrease in gas prices is for political reasons because of the upcoming elections.

    • Bill c. creech

      June 24, 2024 at 9:21 pm

      agree!

  2. Molly B

    June 25, 2024 at 2:55 am

    Joe Biden released a million gallons of gas from our Strategic Petroleum Reserve- again. Whoopedu! That always lowers the price temporarily. Elections coming – Biden/democrats will do anything to make people think inflation is coming down. LOL – it just means, should our military or first responders need fuel to protect our country, they will be short. NO matter – just so Biden looks good until November – and that’s all it is supposed to do. Biden gives us a few months of lower gas prices – President Trump made this country energy independent which means he (we) don’t have to beg for oil from countries that hate us and could cut us off at any time they feel like it. Oh yeah – who do you think is going to pay to replace those 1M gallons?

  3. captain blasto

    June 25, 2024 at 11:18 am

    Price down! Vote D. After election is awarded to the D’s the price goes to $10.00 a gallon and gasoline and diesel come under even restrictions. No one is allowed to buy more than X number of gallons, because it is causing climate stability. Once the Commie Dems nationalize the oil and gas and have it in their name, it will be the greatest thing for the environment ever. Just a matter of time. People are too stupid to stop them.

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