The average price of a gallon of gas has dropped 50 cents in the last month, and analysis indicates the price may drop below $4 a gallon next month.
According to Patrick De Haan, head of petroleum analysis at gas price tracking site GasBuddy, the average gallon of gas is projected to hit $3.99 a gallon by Aug. 14. As of Monday, AAA reported the average cost of gas at $4.52, down from a peak of $5.01 on Jun 14.
$3.99 update: we're ahead of the game thus far, average #gasprices are falling faster than anticipated. All eyes on Biden's trip to KSA. pic.twitter.com/wyIXshJCCR
— Patrick De Haan ⛽️📊 (@GasBuddyGuy) July 15, 2022
Gas has remained above $4 a gallon since March. Some have suggested that Russia’s invasion of Ukraine, plus increased demand, pushed crude oil prices up.
“Global economic headwinds are pushing oil prices lower and less expensive oil leads to lower pump prices,” said Andrew Gross, AAA spokesperson. “And here at home, people are fueling up less, despite this being the height of the traditional summer driving season. These two key factors are behind the recent drop in pump prices.”
U.S. field production of oil still remains below pre-pandemic levels. The U.S. is producing 12,000 barrels per day, about 1,000 fewer than before the pandemic.