HOLIDAY
Gas prices for Thanksgiving: will they go up or down?
Gas prices are expected to be lower compared to last year for Thanksgiving travel. Check out how much they have fallen since 2022...
At the beginning of 2022, the cost of gas rose dramatically due to the disruption of global energy markets caused by the war in Ukraine. As a result of the conflict, the United States, the European Union, and several other countries imposed sanctions on Russian energy resources. Currently, the national average price for one gallon of gas stands at $3.39, a decrease from $3.70 observed a year ago.
GasBuddy, a website dedicated to helping drivers find the best deals on gas in their area, estimates that the average price of a gallon will be around $3.25 during Thanksgiving week. During the 2022 holiday season, driving was the most common mode of transportation due to falling prices.
What is driving gas prices down?
The decrease in gas prices can be attributed to a few different reasons. One of the main factors is the cost of crude oil, which often has a big impact on gasoline prices. Even though OPEC has cut production, concerns about a decrease in demand for crude oil have caused the price to fall for three consecutive weeks.
The price of gasoline is directly affected by the mechanics of supply and demand. Data from GasBuddy shows that US gasoline demand was down by 9.0% compared to last Wednesday and down by 5.6% compared to the average of the last four Wednesdays.
Gas prices tend to follow seasonal trends, with prices usually decreasing during the winter months when drivers can fill up with cheaper winter blends. These blends are less expensive for refineries to produce because they don’t require additives to prevent evaporation, which is necessary during the hotter summer months.
Assuming no significant disruptions in the crude oil market or sudden supply restrictions, gasoline prices are anticipated to continue decreasing in the near future. However, analysts remain concerned about the possibility of the Israeli-Palestinian conflict escalating into a broader Middle East conflict. Such an event would cause anxiety in the markets and could potentially cause the price of crude oil to surge, as happened after the Russian invasion of Ukraine.