Gas prices expected to go down after crude oil dips

Consumers may see some relief at the pump after crude oil dips below $70 a barrel

VICTORIA, Texas – Gas prices keep going up in the U.S., which are far above last summer’s levels, but there may be some relief for consumers. Crude oil prices fell below $70 a barrel in morning trading, down nearly 4% as the rapidly spreading Delta variant of the Coronavirus raised new worries about economic growth.

Nationally the average price rose a penny to $3.16 a gallon, up 10 cents from a month ago, and up 98 cents from a year ago. Patrick De Haan, head of petroleum analysis for Gasbuddy, a tech company that finds real-time prices for gas around the U.S., said that OPEC, an international petroleum organization, plans to raise oil production by 400,000 barrels of crude oil per day, bringing them back to pre-pandemic levels of production. This increase in production hopefully will lead to a peak in the national average price of gasoline. “It’s a positive development in light of U.S. gasoline demand and could mean we’re even closer to seeing a peak in the national average if we haven’t already”, said De Haan.

With the decreasing prices of crude oil, consumers can hope to see gas prices go down in the coming weeks. It’s great for consumers when crude oil dips in price, but for anyone involved in the oil business, they prefer to see oil prices high.