Despite predictions of record travel over the weekend, Americans are likely to get at least one break this Memorial Day.
Gasoline prices are expected to stay below $4 a gallon this weekend as drivers head to their Memorial Day destinations.
Don’t Miss: What’s Driving Gasoline Prices Down
This is a reprieve this weekend compared to last summer. Drivers are expected to save at least $1.6 billion over the four-day period, said Patrick D. Haan, president of petroleum analysis at GasBuddy, a Boston-based retail fuel pricing information and data provider.
“Gas prices on Memorial Day are significantly lower across the country than last year,” De Haan told TheStreet.
Gasoline prices fell for three straight weeks in late April and early May when crude oil prices also fell. But gasoline prices have stabilized and the declines have stalled recently.
The national average price for gasoline was unchanged from last week at $3.51 a gallon, according to GasBuddy data. Diesel prices fell slightly by 3.2 cents over the past week and sells for $3.94 a gallon.
Americans will save $1.6 billion this year
“But while the drop will save Americans $1.6 billion over four days compared to last year, motorists are being cautious about their travel plans this summer with economic headwinds and inflation causing them to stop planning,” he said.
Prices have remained stable over the past week. De Haan said some countries have raised gasoline prices, prompted by volatile oil prices as discussions about the debt ceiling continue.
He said gasoline prices could rise slightly by May 26, “particularly if there are positive developments in debt ceiling discussions in the capital, while pessimism could push prices down a bit.”
The good news is that drivers can plan and budget for their summer vacations this year because gasoline prices should continue to sell for less than $4 a gallon at the pump through the season.
“The national average should remain below the $4-a-gallon level for most of the summer, barring unexpected economic improvements, hurricanes, or refinery outages,” said de Haan.
Crude oil prices are expected to continue to be volatile as discussions continue on reaching an agreement to raise the debt limit.
Prices of both WTI and Brent crude rose on Tuesday as Saudi Arabia’s energy minister said there was potential for additional production cuts by OPEC+, leading to lower gasoline stocks. WTI rose 1.2% to $72.91 a barrel while Brent crude rose 1.1% to $76.84 a barrel.
Saudi Energy Minister Prince Abdulaziz bin Salman said on Tuesday that short sellers of crude oil prices could lose money.
“Speculators, as in any market they are there to stay, I keep telling them they’re going to make a splash, they did in April, I don’t have to show my cards that I’m not a poker player…but I do,” he said at the Qatar Economic Forum, which was organized by Bloomberg.
Short sellers believe that the prices of the asset will fall. They profit by borrowing the asset and selling it, hoping to buy it back cheaper and pocket the difference. Those who are short of oil, risk generating a loss when OPEC+ makes a decision to cut production levels, which ultimately drives up prices.
High demand for oil will continue into 2023 and record prices may occur during the second half of 2023, said Rob Thumel, senior portfolio manager at Tortoise in Overland Park, Cannes.
He said inventory levels globally remain below normal and are likely to remain at those levels.
Tummel said oil prices are likely to rebound and could reach $85 to $95 per barrel for the year.
Common petrol prices
The most popular price for a gallon of gas in the United States is $3.39, up 10 cents from last week, according to data from GasBuddy. It is based on more than 11 million individual price reports from more than 150,000 gas stations in the US
The next four most popular prices are $3.29, $3.49, $3.19, and $3.59.
The average gas price is $3.39 a gallon, flat from last week and 12 cents lower than the national average.
The top 10% of stations average $4.75 a gallon, compared to the bottom 10% averaging $2.91 a gallon.
Gasoline is still cheaper in Mississippi, selling for $2.95 a gallon. Texas comes in second at $3.03 a gallon and Louisiana comes in third at $3.05 a gallon at the pump.
Gasoline in California is highest at $4.76 a gallon, followed by Hawaii at $4.74 a gallon and Arizona at $4.63 a gallon.