Gas Prices Drop, Calm Before The Storm?
Here’s what is happening.
As of right now, gas prices in the United States are falling however there are several factors that could quickly change the momentum of things and make them shoot back up again.
According to Fox, Gas Buddy’s Patrick De Haan explained what changes in the U.S. economy could make the decline of gas prices stall out and why “we are not out of woods yet just.”
On June 14th gas prices hit a record high with the national average being $5.016 and they have declined ever since. De Haan told Fox that “the potential is there” that the U.S. could “see the national average falling under $4 a gallon by mid-August.”
However, this could all just be the calm before the storm because, “markets are extremely tight,” De Haan stressed.
“We are not out of woods yet just because prices are falling, things are still very tight globally; supply is, demand for gasoline, especially diesel, is also problematic,” De Haan added.
De Haan added, “supplies are still very constrained, if we get one major hurricane in the Gulf of Mexico that shuts down, a couple of major refineries, we are going to go right back up.”
“And so motorists should be faced with the reality that while we’re enjoying lower prices, Americans are now spending $200 million less per day. We can go right back up to some of those apocalyptic numbers should we see the right hurricane knocking out some of that vitally needed supply,” he added.
