Gasoline prices have dropped in virtually all 50 states in the U.S., GasBuddy has reported. According to the energy monitoring company, the national average price of a gallon of regular gasoline fell to $3.704, down from $3.814 a week ago and $3.910 a year ago, while diesel fuel sold at a national average of $4.514 a gallon, down from $4.557 a week ago and $5.030 a year ago. Even more encouraging for drivers, GasBuddy has predicted that this trend will continue.
“Finally, the drop in gas prices that we’ve been waiting for has arrived, and the locomotive of falling prices has only recently begun its descent and is gaining momentum. However, some new warning signs have emerged with the recent attacks on Israel, which could destabilize a sensitive region,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
GasBuddy’s thesis will be tested in the coming weeks after Hamas’ deadly attack on Israel on Friday reversed a deep sell-off in oil prices on fears that the conflict could spill over and become a regional war. Israel responded to the attacks with massive retaliatory rocket strikes on military targets in Gaza and Lebanon, and the Israeli prime minister’s office said the security cabinet had approved several steps to destroy the military and governmental capabilities of Hamas and Islamic Jihad “for many years.”
In the meantime, the oil markets remain relatively tense: Last week’s report from the Energy Information Administration showed a 2.2 million barrel drop in U.S. oil inventories, which are now 3.5% below last year’s level, despite domestic demand reaching a record high of 12.9 barrels per day. However, the report was mixed as inventories rose by 6.5 million barrels, signaling weakening demand. Several experts have previously warned of the impending destruction of oil demand due to high oil prices.