Could gas prices fall to $3 per gallon by the end of 2024?

The price of gasoline (RB=F) has been steadily falling, and is now $0.50 cheaper per gallon nationally than it was a year ago. Yahoo Finance Senior Business Reporter Ines Ferré joins Catalysts to discuss how gas prices could potentially hit an average of $3 per gallon by the end of the year.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Melanie Riehl

Video transcript

The price of gas has been on a fairly steady downtrend here, 50 cents cheaper per gallon nationally than it was a year ago today.

But it could go down even further.

Our own.

Annes foray has more on this trend than what we're seeing.

Hey guys.

Yeah, Brad, that's good news for drivers that you're seeing these gasoline prices go lower.

Let's take a look at where we're at with the average of the AAA average showing that the national average is at $3.31 per gallon.

That's about 50 cents lower than last year as you were just mentioning.

And we have seen this steady down trend.

And in fact, right now, we are seeing that nine states along the Gulf of Mexico, those Gulf states there that you can see, uh, Texas, Mississippi, Louisiana, those states right now are seeing the national, their state average at below $3 per gallon.

And that is expected to continue.

You are expected to see more states added to that list with Andy Lippo of Lipo Oil Associates saying that you could see that there's a good possibility that the average national retail price of gasoline hits $3 per gallon by the end the year nationally.

Now, what has been happening is that we have been seeing oil prices on a downtrend.

We've seen gasoline futures.

These have been at three year lows right now, but we are seeing wt I at around $70 per barrel today, we're seeing it lift higher, but look, wt I year to date is up just 2/10 of a percent.

So all of the year to date gains that we have seen with oil totally erased over the several weeks.

And if OPEC Plus decides to add more supply as it plans to in October, then you can see oil prices would depress even more.

So there are some analysts that are questioning whether will go ahead with those rollbacks of some of those voluntary cuts that they have in place guys.

All right, bouncing off of some of those 52 week lows here.

You've been tracking all of this.

Thanks so much.

Appreciate it.