Gas prices could fall by as much as 15 cents per gallon due to the drop in crude oil prices.
U.S. crude futures were trading around $61 a barrel, after falling below $60 per barrel.
Refineries switching to summer-blend fuel, which is typically more expensive, may not cause the usual price jump due to lower crude prices.
OPEC+ is adding supply to the market, contributing to the downward pressure on oil prices.
Why this matters: Lower gas prices can boost consumer spending and confidence, potentially offsetting some of the negative impacts of the tariffs on the broader economy.
The drop in crude oil prices is attributed to concerns over slowing global growth resulting from higher tariffs. OPEC+'s decision to accelerate production cuts restoration in May adds more supply to the market, further contributing to the price decline.
While refineries have switched to more expensive summer-blend fuel, the significant drop in crude prices is expected to offset the usual price increase at the pump. If oil prices remain low, consumers could see the cheapest summer for gasoline prices since President Trump's time in office or since COVID.
The market's reaction reflects concerns about a potential demand hit due to trade tensions. The situation is further complicated by ongoing discussions regarding Iran's nuclear program, which could either increase oil supply or trigger military conflict, impacting prices either way.
Q: How will Trump's tariffs affect gas prices?
Experts predict that gas prices could fall due to a drop in crude oil prices following the announcement of tariffs on U.S. trading partners.
Q: When can consumers expect to see a change in gas prices?
Gasoline prices are estimated to start dropping as soon as this week, with a potential decline of up to 15 cents per gallon over the coming weeks.
Consumers could see a decrease in gas prices in the coming weeks.
Lower crude oil prices are offsetting the seasonal increase from summer-blend fuel.
Trade tensions and OPEC+ decisions are key factors influencing oil prices.
Monitor consumer confidence and demand, especially around the Easter holiday, to gauge the overall impact of these changes.
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Source 1: Trump tariffs could cause gas prices to fall Fox Business
Source 2: Oil prices hold around multi-year lows as China braces for U.S. trade war CNBC
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