Many US states are on track to see gasoline prices fall below $ 2 a gallon later this year, according to experts at GasBuddy.
"Consumers, perhaps at 10,000 stations and maybe even more by Thanksgiving, should have access to prices below $ 2 / gallon – mainly in the South," said GasBuddy Petroleum Analysis chief Patrick DeHaan.
DeHaan claims seasonality plays a As the US Energy Information Association says, gas prices tend to peak in the summer as people increasingly hit the road due to the hot weather. From 2000-2018, the average monthly the price of regular gasoline about 35 cents per gallon higher in August than in January.
"There is more price sensitivity in the summer when people have the means, the free, the weather and the good. While the autumn months do not see as much of the discretionary, out of the blue weekend trip. So low gas prices can't lead to a huge increase in demand this fall, "DeHaan says.
"Motorists are very reactive to gas prices," DeHaan says, adding that with gasoline prices expected to fall, Americans are entitled to find some extra bucks in their bank account, DeHaan predicts that certain driving destinations such as amusement parks will do better while The airlines do not get any major breaks.
"As gasoline prices fade this fall, there is good news for fast-food restaurants, the world's Chipotles and McDonalds, when motorists have a little more money in their wallets," he said.
US-China trade war impact
Oil prices fell Friday after Beijing announced retaliatory tariffs for US crude, President Donald Trump spoke at the G7 Summit in Biarritz, France, claiming that the Chinese are looking to sign a deal with the White House. "I think they will make a deal very bad. "I think it was elevated last night. The Vice President of China came out, he said he wants to see a deal," Trump said.
But despite the President's Efforts To create optimism in the minds of investors, DaHaan says that consumer confidence is hurting gasoline demand.
"Many consumers out there who fill their minds are still unsure of this entire US-China trade game, and I think their barometer, or the way they use it, is definitely tracking the problem."
"Come autumn, we has a natural disadvantage that we see, and although it is a kind of broad trade with China, motorists in a dozen or maybe even more states, will gain access to prices below $ 2 / gallon, he says.
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