USA Gas Prices Could Hit Record This Week
by Andreas Exarheas | Rigzone Staff
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*this article was not written by Roseland Oil & Gas
U.S. gasoline prices could hit a calendar record this week, even with the oil price pulling back, GasBuddy noted in a blog posted on its website on Monday.
“Average gasoline prices were a mixed bag across the country last week as oil markets went on a wild ride, surging on geopolitical tensions before pulling back Sunday night after President Trump signaled a potential deal may be in the works,” Patrick De Haan, Head of Petroleum Analysis at GasBuddy, said in the blog.
“However, even as oil prices ease on deal optimism, continued Ukrainian attacks on Russian oil infrastructure are driving refined product prices higher as output plummets, keeping upward pressure on what Americans pay at the pump,” he added.
“By later this week, the national average could reach its highest level ever recorded for this point in the calendar year, a sobering milestone even as prices remain well below the all-time record set in 2022,” he warned.
De Haan said motorists should keep a close eye on developments both in the Middle East and in Ukraine, “as either front could quickly shift the outlook”.
The blog highlighted that, according to GasBuddy’s data, the U.S. average price of gasoline had fallen 0.8 cents over the last week and stood at $4.05 per gallon. It pointed out that the national average was up 28.5 cents from a month ago and 93.6 cents per gallon higher than a year ago.
‘By later this week, the national average could reach its highest level ever recorded for this point in the calendar year’, Patrick De Haan, Head of Petroleum Analysis at GasBuddy, warned.
According to the blog, the most common U.S. gas price encountered by motorists was $3.69 per gallon, “down 20 cents from a week ago”. This was followed by $3.79 per gallon, $3.99 per gallon, $3.89 per gallon, and $4.29 per gallon, the blog outlined.
The median U.S. gas price was $3.89 per gallon, “down two cents from last week and about 16 cents lower than the national average”, the blog pointed out. It also noted that the top 10 percent of stations in the country averaged $5.33 per gallon and the bottom 10 percent averaged $3.40 per gallon.
The states with the lowest average prices comprised Texas, at $3.55 per gallon, Indiana, at $3.61 per gallon, and Mississippi, at $3.62 per gallon, and the states with the highest average prices were California, at $5.62 per gallon, Hawaii, at $5.40 per gallon, and Washington, at $5.10 per gallon, according to the blog.
The biggest weekly changes were seen in Ohio, which experienced a 22.2 cent increase, Michigan, which saw a 15.5 cent rise, and Indiana, which saw a 13.5 cent rise, the blog showed.
In a report sent to Rigzone by the Fitch Group on Monday, analysts at BMI, a unit of Fitch Solutions, said “the deterioration in U.S.-Iran relations”, and the shift to the BMI Country Risk team’s ‘Messy Negotiations’ scenario, had prompted “a significant upward revision” to its U.S. gasoline price outlook.
“We have raised our 2026 gasoline price forecast to $2.90 per gallon from $2.38 per gallon previously (+22 percent), reflecting expectations of prolonged disruption to Middle East crude and fuel trade, tighter gasoline inventories, and elevated refining margins,” the BMI analysts said in the report.
“The 2027 forecast has also been increased to $2.30 per gallon from $2.10 per gallon, as fuel prices are expected to remain supported even if crude prices moderate,” they added.
“The changes reflect a larger geopolitical risk premium, dwindling stocks, and the increased likelihood of sustained supply disruptions through the Strait of Hormuz,” they continued.
The analysts projected in the report that, over the next three to six months, they expect gasoline prices “to remain elevated through H226, supported by tight inventories, strong refining margins, and higher crude costs”.
“While prices are expected to trend lower eventually, gasoline is likely to lag any decline in crude oil due to persistent supply tightness,” they warned.
“Risks remain skewed to the upside, particularly if the conflict shifts into our higher-intensity ‘Escalation’ scenario, which could result in further supply disruptions, physical fuel shortages, and stronger than expected gasoline price growth,” they said.
According to the AAA Fuel Prices website, the average U.S. regular gasoline price is $4.0890 per gallon, as of August 4. Yesterday’s average was $4.0950 per gallon, the week ago average was $4.0990 per gallon, the month ago average was $3.8100 per gallon, and the year ago average was $3.1530 per gallon, the site highlighted.
In a maternal healthcare event hosted in the White House Oval Office on May 11, which was streamed live on the White House YouTube page, U.S. President Donald Trump said, “as soon as this is over with Iran … you’re going to see gasoline and oil drop like a rock”.
by Andreas Exarheas | Rigzone Staff
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas