Dip in gas prices likely to continue under tariff threat

Updated: Jun. 3, 2019 at 8:26 AM EDT
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JONESBORO, Ark. (KAIT) - While many across the country will not get any relief from the summer heat, they may find cool comfort at the gas pumps.

Analysts with said the nation’s cheapest gas price could fall below $2 a gallon..

In the past week, gas prices in Arkansas fell 0.6 cents to an average of $2.46 per gallon. That’s 21 cents lower than a year ago.

The national average saw an even greater tumble, dropping 1.6 cents per gallon to $2.81.

“The national average has fallen for its fourth straight week, probably not something motorists would associate with the start of the summer driving season,” said Patrick DeHaan, head of petroleum analysis for GasBuddy.

He predicts motorists will see an even bigger surprise in the coming weeks: gas prices under $2 per gallon.

DeHaan stated worries about President Trump’s tariffs on China, and now Mexico prompted a recent $14 drop in oil prices.

He added those fears could lead to a slowdown in oil demand just as U.S. oil inventories rebound sharply.

“While there may be volatility and a return to higher prices should Trump make a deal to avoid tariffs on both the countries, for now, it’s going to be a big win at the gas pump with prices in most areas likely to fall notably in the week ahead,” DeHaan concluded.

Editors note: The original story said the national average of gas could fall below $2 a gallon when it should have said the nation’s cheapest gas prices could fall below $2 a gallon.

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