Name: How the situation in Venezuela could affect gas prices
Uploaded: 2026-01-07T04:42:36.126Z
Duration: 3 min 39 s
Description: A new analysis finds that the average price of gas in the U.S. is expected to fall to its lowest level since 2020 this year. While the yearly average will fall under $3, GasBuddy notes that there is some expected fluctuation throughout the year due to seasonal demand, weather and geopolitics.

A new analysis finds that the average price of gas in the U.S. is expected to fall to its lowest level since 2020 this year. While the yearly average will fall under $3, GasBuddy notes that there is some expected fluctuation throughout the year due to seasonal demand, weather and geopolitics.

Washington

The U.S has launched strikes on sites inside Venezuela, including military facilities and arrested Venezuelan President Nicolás Maduro along wife his wife.

Venezuela Strikes

A recent analysis by Gas Buddy forecasts that the average price of gasoline in the United States will drop to $2.97 per gallon in 2024, marking the lowest level since 2020 and a 13 cent decrease from the previous year. While prices are expected to fluctuate seasonally, the overall yearly average is predicted to remain below $3 per gallon.

Experts note that the ongoing situation in Venezuela, including a recent strike, is not expected to have an immediate effect on US gas prices due to the long-term nature of potential changes in Venezuelan oil production. The primary factors driving lower prices are increased oil supply from OPEC and a gradual economic rebalancing following the pandemic.

How the situation in Venezuela could affect gas prices

Good news for drivers. A new analysis finds the average price of gas in the US is expected to fall to its lowest level since 2020 this year, according to gas price tracking website Gas Buddy, the average price of gas is forecast to drop to $2.97 per gallon this year. It marks a 13 cent drop from average prices last year, while the yearly average will fall under $3 gas, but he knows there is some expected fluctuation throughout the year due to seasonal demand, weather and geopolitics. Average prices are expected to edge up higher than $3 between early between spring and early summer before falling to $2.83 by the end of the year. Here to break all this down is Patrick Dahan. He is the head of petroleum analysis at Gas Buddy. Always good to talk to you, Patrick. Thanks for being here. So Gas Buddy compiled all of this analysis before the strike on Venezuela. Will that attack affect the forecast? A great question. I don't see any impact yet from Venezuela. Keep in mind we are just writing the next chapter and what's developing in Venezuela. It's going to be a very long path. We don't even know what leftovers are going to look like of the Maduro regime, and it's going to be simply quite a long ride till we see exactly what's going to happen there. Will there be loyalists that stay behind? Will the US end sanctions on Venezuela? Just a lot of unanswered questions, and it's very early in the potential process to see Venezuela eventually increase production. I expect it could take years before we see infrastructure rebuilt and before Venezuela potentially sees a major increase in oil production if we even get there. So why are average gas prices expected to be lower this year than previous years? Well, a lot of this really has to do with coming off the pandemic. Gas prices surging as the US economy reopened Russia's invasion of Ukraine. Since then, a slow but steady rebalancing. The big impact this year is that OPEC last March decided to increase oil production on a near monthly basis. Now, while those production increases are paused for the first quarter of this year, that additional supply is pushed. Oil prices to multi year lows falling below $60. It's those lower oil prices that are going to open up the door to the decrease in gas prices that we're expecting for this year. Which areas of the country will have the highest and which will have the lowest prices? Well, California and the West Coast are going to be the most at risk with the nation's highest prices. California is seeing yet another refinery shut down due to the That's going to keep gas prices elevated in areas like California, Nevada, Arizona, Oregon, and Washington, as well as high tax states like Illinois and Pennsylvania. Those states all likely to see prices averaging over $3, whereas Gulf Coast states close to infrastructure and refineries as well as low gasoline taxes are going to see the lowest prices. Places like Texas, Oklahoma, Alabama, Mississippi, and Arkansas should see prices over the course of the year below the $3 mark. This analysis also shows that yearly spending on gas for the average household. How has that shifted over time? Well, part of the pandemic gasoline demand had continued to slowly increase, but 2020 saw a big drop. Of course, a lot of that was Americans staying home. Gasoline demand now starting to pick up again a little bit. A lot of that because more offices requiring workers to go back into the office so gasoline demand also rising or inching up this year also as gas prices are expected to be lower this year. That could spark additional demand as well as the Trump administration. Rolling back some of the EV mandates and incentives could keep Americans hooked on internal combustion engines, boosting gasoline demand. Patrick Dahan, thank you. My pleasure.

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How the situation in Venezuela could affect gas prices

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Venezuela Strikes