How low will gas prices go this winter? 3 analyst predictions.
Gas prices have dropped significantly below the record highs of earlier this year, and experts say they could continue to fall through the holidays, The Wall Street Journal reports.
OPIS, an energy data and analytics provider, says the average price of regular unleaded gasoline dropped to $3.35 a gallon on Thursday. This brings prices at the pump to their lowest since Russia invaded Ukraine in February, an over 30 percent decrease since the record high of over $5 over the summer.
Analysts say gas prices have dropped due to inflation concerns lessening the demand for oil. They add that U.S. oil refineries have begun to increase their production after many were shuttered for maintenance.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The global head of energy analysis for OPIS, Tom Kloza, expects gas prices to continue to shrink through the holiday season.
"The next 60 days look really, really hospitable for consumers," Kloza predicts.
Patrick De Haan, head of petroleum analysis at GasBuddy, believes U.S. fuel prices could reach $3 per gallon this month while conceding that the price decline is "pretty delicately held-together."
"The high didn't last very long. Prices started to come back down," De Haan said. "And I don't think the low this winter will last a sizable amount of time."
He explains that fuel prices tend to rise seasonally beginning in mid-February. De Hann warns that an increase could happen sooner due to unpredictable geopolitical tension or if China's zero COVID policies relax.
Peter McNally, a global sector leader for industrial materials and energy at Third Bridge, told ABC News, "If the Chinese government signals COVID lockdown easing in response to popular protest, then that stimulates among other things oil demand in China and it boosts oil prices."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Theara Coleman has worked as a staff writer at The Week since September 2022. She frequently writes about technology, education, literature and general news. She was previously a contributing writer and assistant editor at Honeysuckle Magazine, where she covered racial politics and cannabis industry news.
-
4 ways to give back this holiday season
The Explainer If your budget is feeling squeezed, remember that money is not the only way you can be generous around the holidays
By Becca Stanek, The Week US Published
-
4 tips for hosting an ecofriendly Thanksgiving
The Week Recommends Coming together for the holidays typically produces a ton of waste, but with proper preparation, you can have an environmentally friendly gathering.
By Theara Coleman, The Week US Published
-
Jussie Smollet conviction overturned on appeal
Speed Read The Illinois Supreme Court overturned the actor's conviction on charges of staging a racist and homophobic attack against himself in 2019
By Peter Weber, The Week US Published
-
3 tips to lower your household bills
The Explainer Prices on everything from eggs to auto insurance to rent have increased — but there are ways to make your bills more manageable
By Becca Stanek, The Week US Published
-
What's next for US interest rates?
The Explainer Two rate cuts so far, with more likely to come
By Becca Stanek, The Week US Last updated
-
Where will inflation go next?
The Explainer Believe it or not, inflation is easing up
By Becca Stanek, The Week US Published
-
What is shrinkflation and why is it happening?
The Explainer The practice reduces the size of a product without lowering the price — and it's perfectly legal
By Becca Stanek, The Week US Published
-
What is dynamic pricing, and how will its increasing adoption affect your wallet?
Speed Read The practice of adjusting prices based on demand is becoming more common
By Becca Stanek, The Week US Published
-
4 steps to get back on your feet financially after identity fraud
speed read The more proactive you are, the greater chance you have of mitigating the impacts
By Becca Stanek, The Week US Published
-
Prices are going down. Here's where you can see the difference.
The Explainer 'An era of price hikes is fading,' but that doesn't mean prices will all come down
By Becca Stanek, The Week US Published
-
5 tips when retiring amid market volatility
feature In a turbulent market, diversification becomes especially important
By Becca Stanek Published