In Q3 2023, gas prices unexpectedly rose due to high crude oil prices and refinery issues, causing concern among drivers.
The surge was driven by the rising cost of crude oil. Prices took a sharp 5.6% drop, the largest in a year, causing market turmoil.
Gasoline supply was disrupted by refinery issues, contributing to higher prices at the pump.
Gas prices are expected to drop in October due to production cuts by Saudi Arabia and Russia to stabilize crude oil prices.
The sudden drop in oil prices can be attributed to a release of speculative pressure, like releasing a taut rubber band.
A government report showed unexpected gasoline inventory increases, along with weak demand, possibly linked to bad weather.
Experts predict gas prices may dip to $3.50, with some saying they could go as low as $3.25 per gallon by Halloween.
California, facing price increases due to refinery issues, may see prices below $6 once maintenance is complete, possibly even below $5 later in the year.
Gas price disinflation is expected for the rest of the year, but OPEC's decisions could bring changes.
Expect lower gas prices for a few months, but stay prepared for potential price fluctuations next spring. Enjoy the relief at the pump while it lasts.