The gas prices are increasing as Labor Day marked the elimination of the summer driving season. The US people prevented the stretch of extraordinary higher prices that has also threatened them. However, the gas prices will hopefully continue their considerable drop over the next 3-day holiday weekend. It is noteworthy that most Americans drive less and continuously preserve fuel.
On June 14, prices were constantly dropping since the national average for unleaded gasoline edged at just under $5.02/ gallon. On Monday, the prices at the pump station were $3.79/ gallon across the country. The head of petroleum analysis at GasBuddy, Patrick DeHaan, issued a statement. He said that he thinks much better news is on its way for now.
DeHaan said gasoline prices are expected to continue decreasing into the fall, supposedly due to a refining interruption. Keep in mind that the US Gulf Coast is considered home to a considerable amount of US refining capacity. He said the US government will get to $3.49 between Thanksgiving and Halloween. DeHaan added that there’s an outside opportunity for the national average to reach as low as $3.29.
Indiana Refinery Was Reportedly Down for a Week
However, it doesn’t need any massive hurricanes on the Gulf Coast or more refinery closings. DeHaan also warned the drop could temporarily slow and turn higher in some regions such as the Midwest and California. On Friday, these areas also experienced a significant increase in the spot market prices. He said one reason is considered BP’s Whiting, Indiana refinery was down for a week.
BP said on Friday that 435 thousand barrel per day refinery was just returning to normal operations. Meanwhile, the refinery effectively processes around 435 thousand barrels per day. DeHaan said he still believes that the coming days will experience a drop under $3 in some states including Oklahoma and Texas. Keep in mind that the South is considered the lowest expensive state for gasoline.
Some States Will Experience Higher Prices
Moreover, drivers were paying an average of $3.26/ gallon in Arkansas and Texas as well as $3.28/ gallon in Mississippi. Some states are expected to experience much higher prices including Nevada at $4.84 and California at $5.26 per gallon. A partner with Again Capital, John Kilduff said consumers are lucky because all the critical fears were not matchy.
Kilduff said it is offering a lot of money back to US people. It provides some relief to Americans with some flexibility to the US economy after a massive tax cut for consumers. The head of global energy analysis at Oil Price Information Service, Tom Kloza, issued a statement. He is hopeful that prices will go down but not too much. These prices could turn higher again close to the end of this year.
Friday Marked the 80th Day of Dropping Prices
Kolza said prices on balance are supposedly going to become comparatively acceptable for the rest of the year. However, the drop in prices nationally is near an end and will reach an average between $3.50 and $3.75 per gallon. There are various elements that could push an increase. It is important that Friday was marked the 80th day of decreasing prices but the trend could stand out.
He also pointed to higher prices on Friday in the wholesale market. Kloza said there is a fact that the US has become a bigger exporter of oil and refined products. Last week, the US Energy Information Administration said the country exported around 10 million barrels of oil and refined products. The total gasoline exports were recorded as 1 million barrels/ per day this week.