Gas prices are falling — Here’s why it’s happening and whether it can continue

The move below $4 begs the question of whether further declines are on the horizon. Experts said the relief may be short-lived.

For one, while WTI is far below its March peak, it has jumped more than 5% over the last week. And gasoline futures, while also well below their recent highs, are up 10% over the last week.

“The streak of daily declines in the retail price of gasoline is about to end as crude oil and refined product futures have rallied off their recent lows,” said Andy Lipow, president of Lipow Oil Associates.

The global energy market remains on edge, and there are a number of factors that could push prices higher in the coming months.

Refiners are running full out to keep pace with demand. A hurricane or other event that brings refinery outages could push up gas prices since there aren’t alternatives readily available as Europe also looks for petroleum products.

The U.S.’ historic release of barrels from the Strategic Petroleum Reserve will end this fall, taking some supply off the market. Additionally, the SPR will need to be refilled. A rebound in economic activity in China could also boost demand for petroleum products.

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