Average U.S. Gasoline Price Dips below $4 for First Time since July

Résumé détaillé

The average price of regular gasoline in the United States dropped below $4 per gallon for the first time since the middle of July, amid a decline in international crude oil…

The average price of regular gasoline in the United States dropped below $4 per gallon for the first time since the middle of July, amid a decline in international crude oil prices and a seasonal drop in demand.

As of early Tuesday, the national average gasoline price stood at $3.9788 per gallon, according to AAA data. That’s down from $4.1493 a week ago and from $4.3669 per gallon a month ago, but well above the seasonal norms.

At this time last year, the national average gasoline price was about a dollar lower, at $3.0707 a gallon.

Gasoline prices have been falling in recent weeks amid lower driving demand, but prices are still about 20% above the seasonal average.

The U.S. is likely to see further declines, and the average gasoline price could fall to $3.70 per gallon by Thanksgiving or so, Patrick De Haan, head of petroleum analysis at GasBuddy, said late on Monday.

Prices “may sink beyond that if the geopolitical situation remains in balance,” the analyst added.

Below $3/gallon prices are popping up at gas stations in Indiana, Ohio, Georgia, North Carolina, Texas, Oklahoma, and Louisiana, De Haan said.

“Since peaking on Sept 24, gas prices have dropped nationally almost every week from $4.494/gal to $3.965/gal today and it will continue for at least the next week or few until finding a bottom- but still can be impacted by geopolitical developments,” the analyst noted.

Oil prices have tumbled in recent days amid renewed hopes that the latest diplomatic push could see the U.S. and Iran reaching some form of an agreement.

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