Gas will be much cheaper this fall: GasBuddy

According to GasBuddy's experts, many US states are seeing gasoline prices drop below $ 2 a gallon later this year.

"Consumers, maybe in 10,000 stations and maybe even more via Thanksgiving, should have access to prices below $ 2 a gallon, mostly in the South," says Patrick DeHaan, head of analytics. oil at GasBuddy.

DeHaan says seasonality plays an important role in determining the price of gasoline as we move into the colder months. According to the US Energy Information Association, the price of gasoline tends to peak in the summer, when people get more and more on the road because of the hot weather. From 2000 to 2018, the average monthly price of regular gasoline was about 35 cents per gallon higher in August compared with January.

"Prices are more sensitive in the summer when people have the means, the free time, the time that it does. While in the fall months, you will not see so much of this, unexpectedly, weekend trips. Thus, low gas prices may not trigger a sharp increase in demand this fall, "says DeHaan.

"Motorists respond very well to gas prices," says DeHaan, adding that Americans should find a few more dollars on their bank accounts, while gas prices will fall. not a huge break.

"The drop in gas prices in the fall is good news for the trendy restaurants, Chipotle and McDonald's restaurants around the world, when motorists have a little more money in their wallets," did he declare.

Impact of the trade war between the United States and China

Oil prices fell on Friday after Beijing announced retaliatory tariffs on US crude. Speaking at the G7 summit this weekend in Biarritz, France, President Donald Trump said the Chinese were seeking an agreement with the White House. "I think they want to make a deal very badly. I think it was high last night. The Vice President of China is out, he said he wants to see an agreement concluded, "said Trump.

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Despite the president 's efforts to inject optimism into the minds of investors, DaHaan said consumer confidence is hurting gasoline demand.

"Many consumers filling their tank are still uncertain about this whole trade battle between the United States and China and I think their barometer, or the way they spend, certainly follows this problem."

"In the fall, we observe a natural disadvantage and even if there is a comprehensive trade agreement with China, motorists from a dozen or more states will have access to lower prices at $ 2 a gallon, "he said. .

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