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Drivers take advantage of low gas prices as states reopen
Gas prices could hit around $2 a gallon on July 4: GasBuddy analyst
GasBuddy Head of Petroleum Analysis Patrick De Haan on gas prices and demand decreasing over the holiday weekend.
Americans are starting to capitalize on low prices at the gas pump as states loosen travel restrictions, a boon for the battered energy industry and a hopeful signal for the U.S. economic recovery.
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With more states easing lockdown measures enacted to fight the spread of the coronavirus, people are gradually hitting the road and causing modest car traffic in cities from Miami to San Francisco. The slight increase in congestion comes with beaches and summer destinations opening and many people avoiding public transportation and airplanes.
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That uptick in driving coincides with a nascent recovery in consumer spending, fueling hopes that the economy is rebounding from the worst of the virus-induced slowdown.
The optimism is driving a rally in investments from stocks to commodities. It powered the S&P 500 and oil prices last week to their highest level since early March. Meanwhile, with more people driving, the national average price for a gallon of regular gasoline climbed in four consecutive weeks through May 25 to $1.96 from a four-year low of $1.74 hit in late April, data from tracking firm GasBuddy show.