10 states where you can find cheap gas prices this July 4th

Gas prices (RB=F) are expected to hit their lowest holiday prices for the Fourth of July since 2021, according to a survey from GasBuddy. GasBuddy head of petroleum analysis Patrick De Haan joins Morning Brief to give insight into gas prices and what consumers can expect during this holiday weekend.

De Hann outlines some of the states where you can find great discounts: "As we go into July Fourth, we're seeing gas prices that are basically on par with what they were last year, at least nationally. But here's the big news: Ten states where you can find average gas prices of $0.25 a gallon or more below last year, if you're on the West Coast, you're a big winner. Washington state seeing prices $0.66 lower this July Fourth last year. Oregon, Alaska, Wyoming all seeing prices about $0.35 lower this July 4th last year."

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This post was written by Nicholas Jacobino

Video transcript

As drivers are hitting the road this Fourth of July weekend and they might find reason to celebrate at the pump.

The national average price of gasoline on July 4th is expected to reach $3.49 a gallon.

That is the lowest holiday price since 2021 according to gas buddy, more on prices.

We are joined by Patrick Dahan.

He's head of petroleum analysis at gas buddy.

Thank you so much for being here with us, Patrick.

So I'm one of those drivers hit the road over the next couple of days here.

Who do I need to thank for these gas prices.

What is driving this news?

A lot of this is simply a normalization of the economy still, uh post COVID Russia's warn Ukraine.

But all in all us oil production remains at record levels.

13.2 million barrels a day.

Gasoline demand has been somewhat soft this summer.

So you can almost thank consumers for that.

As we go into July 4, we're seeing gas prices that are basically on par with what they were last year, at least naturally.

But here's the big news, 10 states where you can find average gas prices 25 cents a gallon or more below last year.

If you're on the west coast, you're a big winner.

Washington State seeing prices 66 cents lower this July for the last year.

Oregon, Alaska Wyoming.

All seeing prices about 35 cents lower this July for the last year.

So some big savings out there with gas prices basically on par with what we saw last July for, you know, Patrick, we were just taking a look at WT I and Brent, both of them hovering right now, mid eighties low to mid eighties level.

What is your kind of top end projection for where we could see this move to in the near term?

Well, I think there remains some upward pressure on oil markets, as you mentioned, uh wt I about $83 a barrel, it seems like we may be bouncing off an upper limit although we could go a little bit higher.

Uh There's certainly been a lot more anxiety in the market here over the last couple of weeks.

Wt I up about $10 a barrel from where we were in early June.

It's hard to pinpoint exactly the sentiment shift here.

Although think we're in a little bit more bullish sentiment that could be helped by Middle East violence between Israel and Hezbollah.

Obviously, some central banks globally starting to lower interest rates that could boost demand slightly.

Also, we're in the midst of now, what's the earliest category five hurricane in the Atlantic that we've ever seen.

So it's a stark reminder that as global inventories are starting to decline, we could be on the hook for some additional risk here in the second half of the summer.

I think wt I could go a little bit higher here, especially if we do see a major organized storm.

I think maybe $90 could be tested briefly before we start to get to those cooler months.

I think the coast starts to clear in September and October and that could usher in a national average that falls below $3 a gallon later this year.

So talk to us about that hurricane season.

You mentioned it's obviously top of mind for investors, but oil markets could be moving not just on weather but also on those geopolitical tensions over the next couple of quarters here.

Which do you anticipate being the bigger catalyst for oil?

Well, you know, I think uh the Middle East is certainly worrisome, especially uh when you talk about Israel and uh uh Hezbollah going at it and how Iran now has a presidential election, there's a lot to watch geopolitically.

But for now, I think kind of the story is still with us consumer, we saw some really bullish travel numbers, but I think it's important to mention that us gasoline demand is still far below record levels.

This July 4 now us economy could start to improve.

Uh But we're really the trendsetter when it comes to global gasoline consumption, us gasoline demand really struggling this summer to hit 9 million barrels.

Where prior to COVID, it was routine that we see demand well over 9 million barrels and potentially even approaching 10 million barrels.

So I think that's part of the conversation here is still uh a US consumer that may not be hitting the road but more traveling, you look at TS a passenger screening numbers, they're at record levels, but I think that's still work in the post COVID world where consumers may not be road tripping as much this summer.

But they may be gravitating towards jumping on a plane.

Airlines seeing more capacity and lower airfares than we saw last summer.

I'll be jumping on my bike, Patrick, appreciate it, Patrick Dahan, who is the gas buddy head of petroleum analysis.

Appreciate it.

Thanks for having me.