The national average price of gasoline is heading down soon as many drilling states prepare to restart off-shore oil platforms that were shut off due to Tropical Storm Gordon, which has since weakened and dissipated.
Crude prices fell on Friday amid the Gulf Coast supply disruptions as the federal government shutdown continues.
According to The Energy Information Administration, the national average cost for regular unleaded will plummet below $3 a gallon in the coming weeks, potentially soon. Gas prices on the Gulf Coast are expected to be between $2.60 to $2.80 a gallon in the coming weeks. In New York City, the average will drop to $2.97 a gallon. It will likely take two to three weeks to return to $3 a gallon in California and Hawaii.
At the same time, analysts expect the huge drop in gas prices to have little impact on the price of crude. Average gasoline prices rose this summer amid geopolitical tensions in the Middle East, with a continuing standoff over Iran’s nuclear program and an ongoing dispute between Saudi Arabia and Qatar, which is home to a major oil facility. Because gasoline prices are tied to the price of crude, most of that impact on the price of crude had already been seen, analysts say.
Meanwhile, drilling and natural gas production is poised to continue to rise in many parts of the country, but some production is already continuing to resume as some production platforms that were previously halted are being reopened.