Analysts are predicting that U.S. gas prices will continue to decline despite the ongoing conflict in the Middle East between Israel and Hamas. Despite the tension in the region, the price of crude oil has been dropping steadily over the past few weeks, likely due to the decreased demand for oil due to the novel coronavirus pandemic.
The reduction in the cost of crude oil has been passed on to U.S. consumers at the pump. Gas prices have been falling for much of the last six weeks, and the national average for a gallon of regular gasoline is $2.73 as of May 20, according to the American Automobile Association (AAA). This is down from $2.81 at the beginning of the month, and roughly 45 cents lower than the same time last year.
Experts believe that the situation in the Middle East is unlikely to affect prices at the pump significantly, as the recent decline in gas prices is mainly due to reduced consumer demand amid the COVID-19 pandemic. Additionally, Saudi Arabia and other major oil producers are still producing oversupplies of crude oil, which is likely to keep oil prices low.
Analysts believe that the U.S. gas prices are likely to keep falling, as demand is expected to remain low throughout the summer travel season. If the economy reopens more quickly than expected and people begin travelling again, prices could start to rebound. Nevertheless, for the time being, U.S. drivers can look forward to low gas prices for the foreseeable future.