Prices at the U.S. pump have fallen for four straight weeks, dropping another 3.5 cents from a week ago, down to $3.55 per gallon on Monday just ahead of the official start of summer driving season over Memorial Day weekend, according to GasBuddy,
Based on prices at the pump a month ago, the national average per gallon has dropped 12 cents, but remains 2.2 cents higher than this same time last year, GasBuddy noted, while the national average per gallon of diesel has fallen 3.3 cents week-on-week and 12 cents year-on-year.
“The news continues to be good for motorists ahead of Memorial Day, with gasoline prices again falling, making it four straight weeks of declines for the national average as we get closer to the start of the summer driving season,” Patrick De Haan, head of petroleum analysis at GasBuddy, wrote on Monday, indicating more good news may be on the way, with GasBuddy set to release its Summer Travel Forecast on Tuesday.
GasBuddy predicts that it will be “mostly good news” for drivers pulling up to the pump for the entire summer, with gasoline prices expected to “stay far under record levels” and continuing to trend lower in the run-up to the 4th of July holiday season.
Weather wildcards, including the hurricane season, could, however, throw up some hurdles to continually lowering gasoline prices, while refinery maintenance and geopolitical tensions in the Middle East could also disrupt predictions.
Oil prices rallied last week for the most part; however, the confirmed death of the Iranian president and foreign minister in a helicopter crash on Sunday near the border with Azerbaijan could potentially give a boost to oil prices, depending on the cause of the crash and what comes next.
On Monday at 11:18 a.m. ET, Brent crude was trading down 0.2% at $83.96, while WTI was trading up 0.1% at $80.07, struggling to maintain a point above the $80 mark.
By Charles Kennedy for Oilprice.com
