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benzinga Energy/Commodity Impact 65/100 ● negative

Analyst Says National Average Gas Price Will Likely Fall Below $4/Gallon by Labor Day, but There’s a Catch: ‘Still…the Most Expensive…’

Aug 27, 2026, 4:31 AM UTC · Primary ticker $USO

GasBuddy analyst Patrick De Haan forecasts U.S. national average gas prices could drop below $4/gallon by Labor Day due to falling WTI crude and early winter gasoline blend shifts. However, he cautions that even at this level, it would still represent the most expensive gas for this time of year, highlighting persistent underlying cost pressures.

This filing discloses an analyst's projection for U.S. gas prices, anticipating a fall below $4/gallon by Labor Day. This is attributed to WTI crude dropping below $80/bbl and some states adopting winter gasoline blends early, a move facilitated by an EPA waiver from the Trump administration. While this offers short-term relief for consumers, the analyst warns that these prices would still be historically high for the period. The geopolitical context of the Iran war and Russia-Ukraine conflict is cited as creating global oil supply uncertainty, which could underpin prices. For traders, this suggests potential downward pressure on oil-related ETFs like USO in the short term, but the 'most expensive ever' caveat implies that any dips might be limited by persistent supply concerns and geopolitical tensions. The mentions of XOM and CVX are in the context of political criticism regarding the Iran war, not direct operational news, making their immediate market impact from this filing neutral.

$USO negative Lower crude oil prices
$XOM neutral Mentioned in political context, not direct operational impact
$CVX neutral Mentioned in political context, not direct operational impact
Source: benzinga
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