Gas prices to decrease in 2024 due to increased domestic production
Gasoline Prices Expected to Drop Further in 2024, Providing Relief for Drivers
Exciting news for drivers! Two new reports suggest that gasoline prices will continue to fall in 2024, bringing much-needed relief to wallets that have been strained by above-average prices for the past two years.
GasBuddy’s Projection: Average Gasoline Prices to Reach $3.38 per Gallon
According to GasBuddy, a leading gas price tracking company, the average gasoline price in the United States is expected to drop to $3.38 per gallon in 2024. This projection indicates a 13-cent decline from 2023 and a significant 57-cent drop compared to the average prices in 2022.
U.S. Energy Information Administration’s Optimistic Outlook
The U.S. Energy Information Administration (EIA) is even more optimistic, projecting a larger 17-cent drop in gasoline averages for the upcoming year. This positive outlook is detailed in the EIA’s Short-Term Energy Outlook, which was published earlier this month.
The primary reason behind this anticipated decrease in gasoline prices is the remarkable growth in domestic oil production. Currently, U.S. oil production is at record levels, with weekly domestic production surpassing 13 million barrels of crude in December. This achievement breaks the previous U.S. record set in the pre-pandemic months of 2020, according to EIA data.
Crude prices play a significant role in determining U.S. retail gasoline prices, accounting for more than half of the total. The surge in U.S. production, combined with the economic slowdown resulting from the Federal Reserve’s interest rate hikes, has provided some much-needed breathing room, as explained by Patrick De Haan, GasBuddy’s head of petroleum analysis, in an interview with the Washington Examiner.
Market Recovery and Diminishing Impact of Russia’s Invasion
In addition to the positive factors mentioned above, GasBuddy’s report highlights the recovery of markets from the shock caused by Russia’s invasion of Ukraine. According to De Haan, the shockwaves from this event have gradually faded into the rearview, allowing for a further reduction in oil prices this year.
With these promising reports, it seems that drivers can look forward to more affordable gasoline prices in 2024, providing a welcome respite for their wallets.
Click here to read more from the Washington Examiner.
How significant is the expected drop in gas prices from the current average in the United States?
Per gallon in 2024. This projection is based on a combination of factors, including global oil production levels, demand for gasoline, and geopolitical events that may affect oil prices. GasBuddy predicts that these factors will align to create a downward trend in gas prices, providing much-needed relief for consumers.
Gasoline prices have been a major concern for drivers in recent years. Many consumers have felt the strain of above-average prices at the pump, forcing them to cut back on other expenses or make difficult financial decisions. The expected drop in prices in 2024 will undoubtedly be a welcome change for these individuals.
The projection of $3.38 per gallon is particularly significant because it is significantly lower than the current average gasoline price in the United States, which hovers around $3.60 per gallon. A drop of twenty-two cents may not seem like much, but over time, it can result in significant savings for drivers. Commuters, who rely heavily on gasoline for their daily journeys, will especially benefit from this decrease in prices.
GasBuddy’s projection is supported by another report from the Energy Information Administration (EIA), which also suggests a drop in gasoline prices in 2024. The EIA predicts that the average price per gallon will be $3.40, just slightly higher than GasBuddy’s projection. This convergence of estimates from two reputable sources indicates a strong likelihood of declining gas prices in the coming year.
So, what factors are contributing to this expected decrease in prices? One major factor is the increased global oil production. Countries like the United States, Saudi Arabia, and Russia have ramped up oil production in recent years, resulting in a greater supply of oil on the market. With more oil available, the prices are expected to decrease as long as demand remains relatively stable.
Another factor contributing to the drop in gas prices is the global transition towards cleaner and more sustainable energy sources. As more countries invest in renewable energy and electric vehicles become more common, the demand for gasoline is anticipated to decrease. This decrease in demand will inevitably put downward pressure on prices.
Of course, it’s important to note that these projections are not set in stone. Various unforeseen events, such as natural disasters or geopolitical conflicts, can always cause fluctuations in oil prices. Additionally, local factors such as taxes and regulations may also affect the final price at the pump.
However, overall, the outlook for drivers in 2024 looks promising. Gasoline prices are expected to continue their downward trend, providing much-needed relief to drivers who have been burdened by high prices for too long. Whether it’s a daily commute or a cross-country road trip, the decrease in gasoline prices will undoubtedly make a positive impact on the wallets of drivers across the United States.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
