Though prices rose recently, theyre still below last years levels

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The national average gas price has declined 3.8 cents in the past week, standing at $3.14 per gallon.
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Prices are expected to continue falling ahead of Independence Day, potentially reaching their lowest level since 2021.
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Diesel prices rose to $3.676 per gallon, with inventories and refinery activity influencing the supply landscape.
AAA predicts a record number of Americans will hit the road this Independence Day holiday and motorists will find gas prices on the way down. According to data from GasBuddy, the national average price of gasoline has dropped for the first time in three weeks, falling 3.8 cents to $3.14 per gallon. This marks a slight 1.1-cent increase from a month ago, but a significant 32.1-cent drop compared to this time last year.
GasBuddys head of petroleum analysis, Patrick De Haan, attributes the recent drop to easing geopolitical tensions in the Middle East, reversing the upward pressure these tensions had exerted just weeks ago.
For motorists planning to hit the road for Independence Day, gas prices are expected to continue falling nearly coast to coast in the lead-up to July 4, De Haan wrote in the company blog. GasBuddy projects the national average could reach $3.15 per gallon, the lowest Independence Day level since 2021.
De Haan is cautiously optimistic that the downward trend could persist through summer. If current conditions hold namely stable geopolitical dynamics and a quiet hurricane season the national average might dip below the $3-per-gallon mark later this summer.
Oil prices are sliding
Crude oil prices also played a key role in the gas price outlook. Both WTI and Brent benchmarks continued to drop from their recent highs. As of early Monday, WTI was trading at $65.44 per barrel, down from $73.78 a week earlier, while Brent was at $67.74, a steep decline from $76.86. Oil prices surged after the U.S. launched attacks on Irans nuclear facilities.
This rapid fallmore than $10 per barrel in just two dayswas attributed to de-escalating Middle East tensions and an absence of supply disruptions.
At the same time, geopolitical developments outside the oil patch namely trade rhetoric from the Trump administration are creating additional volatility. Markets responded positively to Canadas decision to pause its digital services tax after Trump declared an end to trade talks, sending U.S. stock markets higher.
However, supply and demand could keep further price declines in check. The U.S. Energy Information Administration (EIA) reported a 5.8 million barrel decline in U.S. oil inventories for the week ending June 20, bringing them 11% below the seasonal average.
Gasoline inventories also dipped by 2.1 million barrels, now 3% below the five-year seasonal norm. Distillates (such as diesel) fell 4.1 million barrels and are now 20% below average levels.
Meanwhile, refinery utilization jumped to 94.7%, reflecting growing demand. Implied gasoline demand rose by nearly 400,000 barrels per day to 9.688 million.
Posted: 2025-06-30 17:04:51