Gas prices are back below $4 in San Antonio — and likely falling

Gasoline prices have fallen below $4 a gallon in San Antonio and are expected to continue falling through the rest of the summer, if oil markets cooperate.

The average price of a gallon of gasoline in the San Antonio area fell 19 cents over the past week to $3.92 after falling faster over the past six weeks than when prices rose d April through June, according to fuel price tracking service GasBuddy.

“We have seen the price of petrol fall for a fifth consecutive week, with the pace of recent declines accelerating to some of the largest we have seen this year,” said Patrick De Haan, head of analysis. oil at GasBuddy. “This trend is expected to reach a sixth straight week.”

Many stations in the area already sell cheaper gasoline; early today it could be as low as $3.65 a gallon in the area, GasBuddy reported.

Average local gasoline prices have fallen 70 cents per gallon over the past month, bringing much-needed relief to motorists and consumers. Rising energy costs rank among the main contributors to broader inflation, which is at its highest level in 40 years. But with the declines, gasoline is still up $1.13 a gallon from the average a year ago.

Nationally, gasoline prices fell to an average of $4.48 a gallon, down 49 cents from a month ago, according to GasBuddy.

The rapid decline in gasoline prices has followed a plunge in crude oil prices as markets focus on the potential for a global recession as war, inflation and new variants of COVID-19 increase pressures. risks of an economic slowdown. The International Monetary Fund recently warned that the global economy has deteriorated “significantly” in recent months.

Oil rallied on Monday after ending last week with the first weekly settlement below $100 a barrel since early April. Crude gained 5% to settle at $102.60 a barrel in New York as Saudi leaders balked at promising a production boost after President Joe Biden’s visit last week.

The question now is whether the potential for a demand slump outweighs tight supply. Claudio Galimberti, senior vice president of analysis at Norwegian consultancy Rystad Energy, said the weakening economy is offsetting the risk premium markets have priced in since Russia invaded Ukraine. late February, helping oil prices pull back in four of the last five trades. weeks.

Vandana Hari, founder and CEO of Vanda Insights in Singapore, said she believes the trend will continue.

“The momentum may continue until there are perhaps signals from the physical market that current demand is not as bad as prices are reflecting,” she said, “ or there are one or two major supply failures, which force attention to focus on the precarious supply situation.

Giovanni Staunovo, commodities analyst at Swiss investment bank UBS, said high energy prices would share the blame if the global economy slips into recession. The other threat comes from central banks, including the US Federal Reserve, which are rapidly raising interest rates to slow the economy and keep inflation under control.

The risk is that they raise rates too far too fast and tip the economy into recession.

Staunovo, however, said those worries may be overblown and the economy is stronger than markets have reflected. Retail sales in the United States, for example, rose strongly in June, showing that consumers remain resilient in the face of higher prices.

“I’m still looking for a recovery in (rough) prices,” Staunovo said. “We have our (oil) forecast at $122 a barrel by the end of the year.”

Previous Sleepy Eye ag teacher named ACTE Region III teacher of the year | News, Sports, Jobs
Next Highwoods Properties enters DFW market with $130 million deal