U.S. drivers finally see the light? Experts: the average price of gasoline across the U.S. may fall below $4 in the coming weeks

By    30 Mar,2022

DeHaan said oil prices are currently falling sharply as Russia-Ukraine negotiations proceed. "If peace comes, gasoline prices will go back below $4," he estimated. But he also noted that if the conflict intensifies, "it could push prices higher."

Russian-Ukrainian talks in Istanbul on Tuesday made "substantial" progress and paved the way for a meeting between Russian President Vladimir Putin and Ukrainian President Dzerensky, Russian and Ukrainian negotiators said. Following the talks, the Russian side announced that it would significantly reduce its military activities in Kiev and Chernihiv, although the Russian negotiators also said that the commitment to reduce some military operations does not mean a ceasefire.

DeHaan also noted that if the surge of new crown cases overseas continues, "it will lead to more blockades and disruptions in oil demand," which will push down oil prices. But if there are fewer cases, oil prices will rise and effectively push up gasoline prices in the United States.

In a blog post Monday, DeHaan warned consumers that "we will see a small decrease (in gasoline prices) in the near future, and possibly an increase."

However, he said the California market, which has some of the highest gasoline prices in the country, "should eventually cool off. According to the American Automobile Association, the average price of regular gasoline in California was still as high as $5.91 per gallon on Tuesday.