US gas prices have now dropped for 21 days in a row - the longest streak since the start of COVID

·2 min read
President Biden; gas prices in San Francisco, California on May 20, 2022
President Biden.Anna Moneymaker/Getty Images; Justin Sullivan/Getty Images
  • US gas prices have fallen for 21 days in a row, even amid war in Ukraine and summer driving season.

  • The current US average for a gallon of gas is $4.800, down from $4.881 a week ago, but well above year-ago prices of $3.134.

  • Consumption for the fuel has hit its lowest point for this time of year since 2014, excluding 2020.

US gas prices have skyrocketed in 2022, but markets have eased over the last few weeks even amid the summer driving season and the ongoing war in Ukraine.

In mid-June, all 50 states were paying above $4.40 a gallon, with some California towns paying above $6.40 and one city even saw prices hover near $10 a gallon.

But prices at the pump have decreased for 21 consecutive days, according to AAA data — that's good for their longest losing streak since April 2020, in the early part of the COVID-19 pandemic.

The current average for gas prices in the US is $4.800 per gallon, down from $4.881 a week ago, but still elevated compared to the year-ago average of $3.134.

Demand has been falling as well. Consumption for the fuel hit its lowest point for this time of year since 2014, excluding 2020, EIA data shows, suggesting that the tight US gas market has at least temporarily cooled off.

Plus, according to Bloomberg, money managers are holding the fewest bullish bets compared to bearish ones on the futures market since November.

Stockpiles of the key commodity have increased by over 4 million barrels during the last two weeks, according to Bloomberg, even though those figures typically move in the opposite direction during this time of year.

The recent market trends bode well for President Joe Biden as he faces limited policy options on lowering fuel costs. His recent proposal to suspend the federal gas tax was quickly dismissed.

Despite the current losing streak, analysts have predicted a brutal energy market ahead thanks to elevated oil prices, low stockpiles for crude, and refineries running near full capacity. JPMorgan analysts forecasted that gas could surge above $6 a gallon on average in the US.

Read the original article on Business Insider