The falling gas prices could cause a stall out’ because of certain circumstances, GasBuddy analyst warns
GasBuddy director to petroleum analyses Patrick De Haan explained what causes could trigger lower gas prices to “stall out,” warning that “we are not out of woods yet just.”
De Haan made his case in FOX Business’ ” Mornings with Maria,” Monday when the average national price for a gallon dropped little bit up to $4.52 as opposed to $4.53 the previous day according to AAA.
Prices for gasoline have fallen after hitting a peak of $5.016 on the 14th of June. The previous week the cost of gasoline per gallon within the U.S. was $4.67; as of a month ago, it was just below $5, at $4.98 according to AAA who said that Monday’s average national was $1.35 higher than the same period last year.
De Haan said on “Mornings with Maria’ that “the potential is there” that the U.S. could “see the national average falling under $4 a gallon by mid-August.”
The analyst warned the market is facing “still a lot of potential challenges,” including the impact of hurricane season as well as the earnings season’s outcome.
GasBuddy Analyst Patrick De Haan explains what factors could stop the cost of gas from falling further. (PatrickDehaan.com / iStock)
“We’re seeing some pretty good earnings reports coming out, which is pushing up the prospects that maybe the economy won’t head for that deep recession,” De Haan told the AP.
“So keep in mind, while the future may look good with falling prices, if we see continued positive economic data, we could eventually see those falling prices stall out short of that $3.99 handle.”
|Ticker||Security||Last||Change||Change in %|
|USO||UNITED STATES OIL Fund L.P.||74.06||-0.15||-0.20%|
|BNO||UNITED STS BRENT OIL FD UNIT STS BRENT OIL FD UNIT||30.07||-0.13||-0.43%|
De Haan offered the perspective as oil prices rose above $100/barrel price on Monday.
“Markets are extremely tight,” De Haan said.
“We are not out of woods yet just because prices are falling, things are still very tight globally; supply is, demand for gasoline, especially diesel, is also problematic.”
He then added that since “supplies are still very constrained, if we get one major hurricane in the Gulf of Mexico that shuts down, a couple of major refineries, we are going to go right back up.”
“And so motorists should be faced with the reality that while we’re enjoying lower prices, Americans are now spending $200 million less per day. We can go right back up to some of those apocalyptic numbers should we see the right hurricane knocking out some of that vitally needed supply,” De Haan said.
GasBuddy analysis on the factors that might result in gas prices falling to’stall out’
GasBuddy director for petroleum research Patrick De Haan discusses the direction the gas prices he thinks are headed on ‘Mornings With Maria.’
Millions of Americans are suffering financial pressure due to inflation continued to be soaring at its highest in the month of June as consumer prices reached a record high in four decades which only aggravated the issue.
Last week it was revealed that the Labor Department revealed that the consumer price index, which is a broad gauge of the cost of essential goods like rent, gasoline, and groceries in June, increased 9.1 percent in June compared to one year ago. Prices increased by 1.3 percent in the month-long period that began in May. These figures were significantly more than the 8.8 percent headline figure, and the 1% increase monthly estimated according to Refinitiv economists.
Inflation rates are hotter than anticipated
FOX Business’ Cheryl Casone discusses the June Consumer Price Index released Wednesday that showed inflation currently stands at a fresh 40-year-high.
The figures reflected the most rapid rate of inflation since December 1981.
The price hikes were significant: Energy prices were up 7.5 percent in June compared to the previous month and are now up 41.6 percent from the previous year. The average price of gas costs 59.9 percent higher than it cost a year ago, and 11.2 percent higher than in May.