Lower gas prices could be fueling economic pump-up

The price for a gallon of gas in Idaho dipped a bit this week due to lower crude prices and economic uncertainty, experts stated.

According to AAA, the average cost for a gallon of gas was about $3.29 in Idaho and $3.19 nationally on May 5. For Costco and Walmart members, prices ranged from $2.92 and $2.94 at locations throughout the Treasure Valley.

On the national stage, Californians were paying the most on average at $4.78 per gallon and Mississippians were paying the least at $2.65 per gallon.

Though average prices were around $3 per gallon and cheaper just a few months ago, and prices are slowly coming down, travelers shouldn’t bank on continued lowering costs.

“Significant drops in the cost of crude oil are keeping pump prices in check, but fuel demand is expected to surge as we approach the Memorial Day weekend,” said Matthew Conde, AAA Idaho public affairs director. “We’ll happily save what we can for as long as we can.”

Conde’s organization stated that the West Texas Intermediate benchmark for crude oil was trading near $57 per barrel on Monday. The cost of crude oil accounts for more than half the price of processed gas.

However, crude oil prices could also signify a weaker economy.

In March, Patrick De Haan head of petroleum analysis at GasBuddy.com, told CBS News that declining gas prices could signal economic slowdowns.

“Overall, the volatility in the government is certainly driving stock prices lower. That’s also pulling oil down on a fear that an economic slowdown will likely undermine global oil demand,” De Haan told the news agency. “

That said, lower prices is good news for consumers and businesses that rely on gas consumption for operations. That helps to increase spending in other areas of the economy.

Some experts have stated that crude oil could bottom out in the low $50 range per barrel but then stabilize around $60 to $80 per barrel, which is more profitable for oil companies.

Oil-producing countries last weekend stated in an OPEC meeting that they would increase production in June to 411,000 barrels per day, according to a report by Business Insider.