Gas prices dip as oil falls below $100
The national average of a gallon of regular gasoline is $4.316
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Gas prices fell again Tuesday as the price of oil dropped below $100 a barrel.
The national average for a gallon of regular gasoline slipped to $4.316 as of Tuesday, as oil prices retreated, according to AAA. On Friday, prices hit a record high of $4.33 per gallon. Oil closed at $96.44 per barrel.
This week's drop in oil could mean temporary relief for U.S. motorists who have been faced with rising prices at the pump even before the war between Russia and Ukraine.
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A motorist pumps gasoline at a Mobil gas station following Russia's invasion of Ukraine, in West Hollywood, Calif., Friday, Feb. 25, 2022. (AP Photo/Damian Dovarganes / AP Newsroom)
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"If these levels hold, gas stations will be able to quickly recoup any losses from the intense rise in oil prices over the last few weeks," GasBuddy spokesperson Nicole Petersen told FOX Business. "This means they'll be able to lower prices at the pump relatively quickly as well."
The national average has continued to rise since the beginning of the year due to strained supply and increased demand, according to Edmonds. However, Russia’s invasion of Ukraine two weeks ago caused oil prices to surge higher, pushing prices at the pump to levels not seen in over a decade.
Gas prices are advertised at over six dollars a gallon Monday, March 7, 2022, in Los Angeles. (AP Photo/Marcio Jose Sanchez / AP Newsroom)
Patrick De Haan, GasBuddy's head of petroleum analysis, tweeted that the drop in gas prices could fall under $4 in the coming weeks if oil remains in the double digits.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 71.61 | -0.11 | -0.15% |
| BNO | UNITED STATES BRENT OIL FUND - USD ACC | 29.00 | +0.04 | +0.14% |
Since oil is a global commodity, most U.S. consumers should "feel some level of relief," Petersen added.
However, states with lower gas prices like Mississippi and Oklahoma, according to Petersen, will see gas prices drop to the $3 range "well before states like California, which is still near the $6 mark on average."
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It's unclear how long this relief will last though.
"The situation remains very fluid depending on outcomes in Ukraine. If things take a turn for the worse, we could easily see prices begin to increase again," Petersen added.