Gas prices could fall as crude oil prices drop, expert says
WASHINGTON, DC - NOVEMBER 26: People stop to fill up their cars at a gas station on Rhode Island Avenue on November 26, 2024 in Washington, DC. Gas prices have hit a 3-year low as millions of Americans take to the roads for Thanksgiving. (Photo by An
WASHINGTON - One expert says there is one "silver lining" from crude oil prices dropping to their lowest level in four years.
In the wake of President Donald Trump announcing tariffs on U.S. trading partners, U.S. crude futures fell below $60 per barrel Monday morning. As of Tuesday morning, they are just under $61 a barrel. That's down over $10 per barrel over the last three days.
The price of crude oil is the largest factor in the retail price of gasoline, making up more than half of the total cost consumers pay at the pump.
What they're saying:
"The silver lining from the recent market turmoil is that the significant decline in oil prices will lead to a decline in gasoline prices for the consumer," Andy Lipow, president of Lipow Oil Associates, told FOX Business.
Even as more expensive summer gas prices start to hit consumers, Lipow said they won't see the impact due to the significant drop in crude prices.
Phil Flynn, a Futures Group senior analyst, told FOX Business that while crude and gasoline prices don't always drop linearly, the decrease in crude oil prices should offset the typical 10- to 15-cent gallon increase consumers typically see in the summer.
Consumers "could see the cheapest summer for gasoline prices since President Trump was in office or since COVID," according to Flynn.
When could gas prices start dropping?
Lipow estimates as soon as this week, with a decline of 15 cents per gallon over the coming weeks.
The Source: This story includes reporting from FOX Business.