Analyst Says National Average Gas Price Will Likely Fall Below $4/Gallon by Labor Day, but There’s a Catch: ‘Still…the Most Expensive…’
Key takeaways
- Gas prices may drop below $4/gal by Labor Day, but could still be the most expensive ever for this season.
- WTI crude $81.84/bbl
- Brent crude $87.48/bbl
- USO $127.23
What happened
GasBuddy analyst Patrick De Haan forecasts that U.S. gasoline prices could dip below $4 per gallon by Labor Day, citing falling West Texas Intermediate crude prices and early winter‑gasoline switches in some states. At the time of the post, WTI was trading around $81.84 per barrel and Brent at $87.48, while the national average gasoline price was $4.1014 per gallon and diesel $5.6230. De Haan warned that even if prices fall, they may still be the highest ever for this time of year.
Why it matters
The forecast signals a potential easing of fuel costs for consumers amid geopolitical tensions in the Middle East and Eastern Europe. It also highlights how supply‑side shocks—such as the Iran war and the Russia‑Ukraine conflict—can temporarily lift prices, yet recent market moves suggest a reversal. For investors,…
Short-term and longer-term
Short-term. Short‑term traders should watch WTI futures around the $80 mark and monitor state‑level gasoline switches, as these can trigger rapid price swings.
Longer-term. Over the next few weeks, investors should assess how a sustained drop in gasoline prices might affect the profitability of U.S.