A man pumps gas into his car in Miami, Florida.

US average gas prices are headed closes to $4.00 a gallon, extending a recent run of price declines. 
Gas prices have dropped for more than 50 straight days in the face of demand destruction after prices soared above $5 this year. 
But a disruptive hurricane could propel prices upward again, said AAA and OPIS. 

Drivers across America may soon pay, on average, less than $4 a gallon for gasoline, with prices steadily decreasing over the past month, but energy experts say an active hurricane season holds the potential to kick prices back up. 

The national price average of regular-grade gas was $4.113 as of Friday, according to tracking by motor club AAA. The price marked the 52nd consecutive decline in what’s been a painful few months at pump stations for millions of Americans. Down from a peak of $5.01, the national average stood at $4.80 a month ago but was much higher than $3.19 a year ago.

“A back-of-the-envelope calculation seems to suggest that the daily cost for consumers by around the middle of this month we’ll be about a half a billion dollars per day less than what it was in the first 10 days or so of June,” Tom Kloza, global head of energy analysis at OPIS, told Insider this week. He separately said Friday the country was “a few hours” away from the average price slipping below $4.10 a gallon and that the median price was $3.939. 

The market saw considerable demand destruction when gas prices hit $5 a gallon and that’s contributed to the consecutive drop in pump prices, he said. The downshift was taking place with the summer driving season moving closer to an end as Americans wrap up their road trips. Traditionally marked by Labor Day holiday, the summer driving season will conclude September 5. 

What will still running on the calendar, however, is hurricane season. August through October will be the peak months in a season set to end on November 30. 

Above-normal hurricane season

“Atmospheric and oceanic conditions still favor an above-normal 2022 Atlantic hurricane season,” the National Oceanic and Atmospheric Administration, or NOAA, said this week in updating its 2022 outlook. It now sees a 60% likelihood of an above-normal season, edged down from its previous call of a 65% chance. 

“A lot of production comes offline because of a bad hurricane season domestically,” …read more

Source:: Business Insider

      

US gas prices are sliding toward $4 but hurricane season will have a say in whether prices stay lower, say energy experts

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