Gas prices could fall as crude oil prices drop, expert says
WASHINGTON - One expert says there is one "silver lining" from crude oil prices dropping to their lowest level in four years.
In the wake of President Donald Trump announcing tariffs on U.S. trading partners, U.S. crude futures fell below $60 per barrel Monday morning. As of Tuesday morning, they are just under $61 a barrel. That's down over $10 per barrel over the last three days.
The price of crude oil is the largest factor in the retail price of gasoline, making up more than half of the total cost consumers pay at the pump.
What they're saying
"The silver lining from the recent market turmoil is that the significant decline in oil prices will lead to a decline in gasoline prices for the consumer," Andy Lipow, president of Lipow Oil Associates, told FOX Business.
Even as more expensive summer gas prices start to hit consumers, Lipow said they won't see the impact due to the significant drop in crude prices.
Phil Flynn, a Futures Group senior analyst, told FOX Business that while crude and gasoline prices don't always drop linearly, the decrease in crude oil prices should offset the typical 10- to 15-cent gallon increase consumers typically see in the summer.
Consumers "could see the cheapest summer for gasoline prices since President Trump was in office or since COVID," according to Flynn.
When could gas prices start dropping?
Lipow estimates as soon as this week, with a decline of 15 cents per gallon over the coming weeks.
The Source
This story includes reporting from FOX Business.
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'A simplified view: you realistically have to make at least 500 pairs of the same or similar product in a day, in a one-shift operation, to even be able to consider an investment into automation,' he believes. Desma's 'bread and butter'—direct injection molding machines—allow footwear manufacturers to produce foam midsoles for performance shoes and sneakers. The largest, most advanced model can churn out 1,500 to 2,000 pairs per day. All told, it's a big investment, with machines costing hundreds of thousands of dollars. Ergo, the footwear manufacturers who are intent on scaling operations using these machines aren't doing so on a whim. 'All the major projects we're working on—whether those are already projects we have on order, or projects we hope to have on order soon—they all originated in 2024,' Schafer said. 'Those projects don't happen overnight; the machines and calculations are complex, so you have to really be sure that you believe in your product and in your forecast.' 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