White House spokesperson Abdullah Hasan argued that gasprices should be falling more than they have been.
“American families should be seeing more relief,” he said. “Over the last month, wholesale gas prices have declined by 18% but prices at the gas station have only dropped by 6%. Oil and gas companies are making record profits and need to pass these savings on to consumers at the gas pump now. President Biden will use every tool he has to get gas prices lower, and to hold oil and gas companies accountable.”
What happens next?
Gas prices will probably remain relatively close to the current levels in the near term, said Tom Kloza, global head of energy analysis for OPIS, which tracks gas prices nationally for AAA.
“I don’t think you’ll see a major move higher or lower,” he said recently, prior to Wednesday’s modest price rise. Kloza added that competing forces will affect prices in the near term.
Meanwhile, seasonal factors, such as the end of the summer driving season and the annual end of the US environmental regulations requiring a cleaner, more expensive blend of gasoline during summer months, could help ease prices. Also pushing prices lower: Oil traders remain nervous about the state of the global economy.
“Crude has no speculative investment money behind it right now,” Kloza said.
$3 gas?
Wholesale gasoline futures point to sharply lower gas prices by the end of the year, with the possibility that below $3 a gallon could be common in much of the country, Kloza said. But he cautioned “futures prices are a notorious poor predictor of what the future will bring.”
Although sub-$3 gas remains rare — only 5% of the 130,000 US gas stations are selling gas for less than that price, according to OPIS — relatively cheap gas has become far more common with the months of decline. Nearly one station out of four nationwide is selling gas for less than $3.25 a gallon, and 56% are selling it for less than $3.50 a gallon.
A one-cent rise in gas prices is not a meaningful change for most drivers, and prices could slump again as global economic concerns grow.
