Worst may be over for drivers filling up their tanks: GasBuddy analyst
The national average for gas continues to retreat, now around $4.11 per gallon
Fall in oil prices starting to have 'profound impact' on gas prices: GasBuddy analyst
Patrick De Haan, head of petroleum analysis at GasBuddy argues the 'worst may be behind us' as it pertains to gas prices, but outlines the different factors that could change that.
Patrick De Haan, head of petroleum analysis at GasBuddy, argued on Monday that the "worst may be behind us" when it comes to gas prices, but outlined the different factors that could change that.
De Haan provided the insight on "Cavuto: Coast to Coast" as the national average for a gallon of gas continued to retreat, now at around $4.11, according to AAA, signifying a 22-cent drop from last month's record high.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The association noted in a news release that the fluctuating price of oil continues to be the main factor influencing gas prices, adding that prices "will likely face downward pressure if oil prices stay below $100 per barrel."
Oil prices have fallen back on expectations of weaker demand after peaking above $130 per barrel last month due to anxiety about the disruption of supplies from Russia, the world's No. 2 exporter.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 74.25 | +1.05 | +1.43% |
| BNO | UNITED STATES BRENT OIL FUND - USD ACC | 29.82 | +0.25 | +0.85% |
De Haan noted on Monday that the fall in oil prices is starting to have a "profound impact" on gas prices.
STAGFLATION RISKS GROW AS UKRAINE WAR FUELS EVEN HIGHER INFLATION
"Americans [are] now collectively saving about $100 million every day fueling up in light of the lower prices, and the good news is with oil prices down today significantly, I think we will see a fourth straight week of declines across the country," he told host Neil Cavuto.
De Haan argued that one of the biggest factors for the lower prices "is the surge in COVID cases" in China and "how Chinese authorities are responding to the surge in COVID cases by issuing those travel restrictions."
"As a result, there is a tremendous amount of demand destruction happening in China," he told Cavuto.
Biden admin cutting into oil reserves to lower gas prices
U.S. Oil & Gas Association president Tim Stewart discusses the impact of breaking into the U.S. oil reserves on ‘Fox Business Tonight.’
De Haan also argued that another contributing factor is concern about "what lies ahead" given "the possibility of recession as interest rates and inflation continues to go up."
He said that he believes "gas prices may have peaked for the year ahead," but warned that prices could go higher "if there is unrest or escalations between Russia and Ukraine" and with expectations that hurricane season will "be a busy one."
CLICK HERE TO READ MORE ON FOX BUSINESS
De Haan then stressed that there are "a lot of factors" that could result in drastically different outcomes this summer, but said, hopefully for motorists, "the worst may be behind us."
FOX Business’ Joe McDonald contributed to this report.