The national average price of gasoline in the United States has declined by 3.8 cents over the past week, now standing at $3.09 per gallon, according to GasBuddy’s latest report.
Patrick De Haan, head of petroleum analysis at GasBuddy, noted, “The national average has seen a modest decline, but with oil prices rising again, we could see the trend reverse in the coming weeks.”
Despite the recent dip, regional variations persist. States like Mississippi and Texas report some of the lowest averages at $2.64 and $2.70 per gallon, respectively, while California and Hawaii remain the highest at $4.77 and $4.47.
“Based on gasoline demand, the lead-up to the Memorial Day holiday kicked off the summer driving season with gusto. But one strong week isn’t enough to significantly move retail gasoline prices, especially with domestic production continuing near record levels,” AAA spokesperson Lauren Fabrizi told CT Insider.
Monday’s oil prices could be a spoiler if they show any staying power.
Oil prices jumped nearly 4% on Monday following a major overnight drone assault by Ukraine on Russian military airfields, reportedly destroying over 40 aircraft and igniting fires across Kursk and Voronezh. Russia claims it intercepted 162 drones. The attack deepens geopolitical tensions, driving Brent to $65.15 and WTI to $63.17 by midday. Meanwhile, Goldman Sachs reiterated that OPEC+ is likely to implement its final planned output hike of 411,000 bpd in August, despite expectations of a demand slowdown. OPEC confirmed a similar increase for July over the weekend, adding to upward momentum in crude markets.
With oil prices surging on Monday, analysts warn that while current prices offer relief to consumers, factors such as OPEC+ production decisions and geopolitical tensions are set to significantly influence future trends.
“If oil prices continue to climb, we may see gasoline prices follow suit, especially as summer demand peaks,” De Haan wrote.
By Tom Kool for Oilprice.com
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