US gas prices have fallen to their lowest since February and could drop below $3 by Christmas, GasBuddy says
- US gas prices fell to their lowest since February and could drop below $3 a gallon, GasBuddy said.
- The fuel cost $3.52 a gallon on average in the US on Monday, down about 12 cents on a week ago, it said.
US gasoline prices have dropped to their lowest level since February and could fall further to below $3 a gallon before Christmas, according to GasBuddy.
The national average price of gas at the pump stood at $3.52 a gallon on Monday, down about 12 cents on a week ago, the fuel cost tracking company said in a blog post. American drivers from coast to coast have seen costs decline for three weeks in a row, it said.
"All the metrics look very positive for motorists as this week is likely to continue seeing falling gasoline prices, with many areas falling to the lowest level since Russia's invasion of Ukraine in February," Patrick De Haan, GasBuddy's head of petroleum analysis, said in the post.
"It's entirely possible the national average price of gasoline could fall under $3 per gallon by Christmas, which would be a huge gift to unwrap for motorists after a dizzying year at the pump," he added.
Three states — Oklahoma, Texas and Mississippi — now have average prices of $2.99 a gallon, De Haan said in a tweet. For the whole of the US, it stood at about $3.49 a gallon Tuesday, according to GasBuddy data.
Gas prices topped $5 a gallon in June, as global oil prices soared thanks Russia's war with Ukraine and an energy crisis in Europe. They began to trend gradually lower after President Joe Biden started releasing record amounts of crude from US reserves, concerned about the impact of high prices on inflation.
On Monday, crude oil prices have came under downward pressure as traders worried about a fall in demand from China, the world's second-biggest economy, as public protests erupted over the country's strict zero-Covid policies.
Overall, US benchmark WTI crude futures are down 15% over the past three months, while Brent crude, the international benchmark, has lost 18%.
Meanwhile, US demand for oil is under seasonal pressure, as cooler temperatures encourage Americans to stay at home, GasBuddy said.
"Coast-to-coast we will see more #gasprice declines this week, along with diesel declines," De Haan wrote in a tweet Monday.
"Don't be in a rush to fill up. California eventually could fall below $4/gal (it's in the pipeline now, the question is more if the situation will hold)," he added.