Relief at the pump! Average US gas price could fall to $3.25 by Halloween, while oil prices are in freefall – to $84.22 per barrel
- Gas prices fell to $3.74 per gallon, down nine cents over the past week
- The decline was attributed to plummeting oil prices, which fell to $82.24 per barrel
- Analysts said gas prices could drop to $3.25 per gallon by Halloween
Motorists got a glimmer of hope today as gas prices fell to $3.74 a gallon — while experts say they could fall even further before Halloween.
Figures from AAA show the price of a gallon fell nine cents last week and is 13 cents below the September 2023 peak.
But analysts predict prices will fall even faster after the price of US oil fell 5.6 percent to $84.22 per barrel on Wednesday. It marked the biggest single-day drop in a year.
On Thursday, the price fell even further, falling to a five-week low of $82.24 per barrel. The figures defy Wall Street banks’ predictions last week that U.S. crude could rise to $100 after aggressive supply cuts from Saudi Arabia and Russia.
Andy Lipow, president of the consulting firm Lipow Oil Associates, said CNN that prices nationally could drop to nearly $3.50 per gallon in the coming weeks.
Motorists got a glimmer of hope today as gasoline prices fell to $3.74 per gallon
Meanwhile, Tom Kloza, an energy analyst for the Oil Price Information Service, said outlet prices could drop to $3.25 per gallon by Halloween.
He estimated that retail prices would drop 1.5 to 2.5 cents per gallon in the coming days.
“People at cocktail parties will finally talk about gas prices in a good way,” Kloza said.
“It’s undoubtedly welcome news for the consumer part of the economy.”
He added: “Gas price disinflation will likely be the story for the rest of the year.”
It comes after gas prices rose to a seasonal high in a decade in September, with the cost of a gallon topping $3.8 per gallon, amid concerns about supply disruptions from the Middle East.
Experts say they could drop even further before Halloween. Pictured: The states with the highest and lowest gas prices as of today
This year’s seasonal highs were significant because they occurred at a time when gas prices are generally falling as summer gives way to fall and people drive less. Plus, it comes on the heels of a surprisingly cheap summer, despite the Fourth of July travel – which historically drives prices up.
An extension of production cuts by major producers Saudi Arabia and Russia on Tuesday put further pressure on already tightening global supply and appeared to have almost immediate consequences.
The decision was announced by both Riyadh and Moscow as a so-called ‘precautionary measure’ to ensure the stability of the oil market. This week, 1.3 million barrels were withdrawn from the world market, resulting in abnormally high energy prices in the US.
The problem is compounded by the fact that U.S. officials are still trying to make up for the more than a million barrels of fuel per day lost during the pandemic.