Expect gasoline prices to keep sliding over the next month to dip below a national average of $3 per gallon, one analyst says.
"I think the die has been cast for prices over the next 30 to 45 days," Tom Kloza, global head of energy analysis at OPIS, told Yahoo Finance on Wednesday.
On Wednesday, the national average for gasoline sat at $3.12 per gallon, down from $3.37 one month ago, according to AAA data.
"We'll move beneath the December 2022 low of $3.0961 per gallon over the weekend, and the next stop will be just under $3 per gallon," Kloza said.
Twenty-four states across the Midwest and Gulf Coast are already seeing averages below the $3 level.
The average price in California, where prices are most expensive compared to the rest of the country, registered at $4.68 per gallon on Wednesday, down from $5.07 one month ago.
The price declines come amid lower seasonal demand and increased production from refineries that have come back online from maintenance.
Inventories are also piling up. Government data released last week showed gasoline stockpiles rising by more than 5 million barrels versus estimates of 1.3 million.
Crude oil, which is used in refining fuels, is down roughly 25% since its peak in late September. That's despite a deepening of production cuts announced earlier this month by OPEC+, a consortium of oil producers.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre.
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