American gasoline prices fall to six-month low, Harris welcomes "a godsend"

With less than two months until the US presidential election, international crude oil prices and domestic oil prices in the US have both dropped significantly, which could provide a boost for the Democratic presidential candidate Harris. Specific market data shows that as of the close of Friday (September 6th), international crude oil futures prices have dropped more than 2%, reaching a new low since June 2023. The futures price of WTI for delivery in October fell 7.99% this week, while the futures price of Brent for delivery in November fell 9.82% this week. At the same time, RBOB gasoline futures prices have fallen nearly 9.4% this week, closing near $1.90 per gallon, a level not seen since November 2021. This means that this gasoline price indicator has dropped below the levels before the Russia-Ukraine conflict erupted. According to data from the American Automobile Association (AAA), the average price of regular unleaded gasoline as of Friday was $3.296 per gallon, a drop of over 10% from the peak in April this year, indicating that retail gasoline prices have also fallen to a six-month low. Analysts believe that with the bleak outlook for the international crude oil market and lower-than-expected demand in the US, gasoline prices may continue to decline, potentially easing attacks on Harris by the Republican presidential candidate Trump on the issue of cost of living. Trump pledged on Thursday at the New York Economic Club that if re-elected, he would take measures to increase fuel supply with the goal of cutting energy prices in half. He said, "Harris cannot lower the price of any product because her energy policies are raising the cost of all products." Bob McNally, president of the consulting firm Rapidan Energy Group and former White House energy adviser under the Bush administration, said that some voters had previously blamed the White House for high oil prices, but now the decline in oil prices could garner some support for Harris. A survey shows that about thirty percent of swing state voters believe that gasoline prices are their most important economic issue. McNally said, "Harris is lucky that the most noticeable part of the cost of living (gas prices) is falling." Patrick DeHaan, head of petroleum analysis at the oil price statistics software GasBuddy, believes that by November election day, gasoline prices in as many as 30 states could be below $3 per gallon. "This timing looks very favorable (for Harris)." DeHaan said, "We may also see the national average gas price fall below $3 for the first time since Biden took office. This is a situation rarely seen by Americans." While Trump may lose a very strong attack point, it should be noted that retail gasoline prices are still nearly 40% higher than when Biden took office in January 2021. Trump pledged on Thursday that if re-elected, he would declare a "national emergency" in the energy sector to stimulate domestic energy production and quickly approve more new oil and gas extraction projects. Kevin Book, managing director of consultancy ClearView Energy Partners, said, "Republicans have been mentioning this issue, believing it will resonate with lower-income long-distance driving voters." This article was originally published on Cailianshe, translated by GMTEight, edited by Chen Yufeng.