Gasoline prices are expected to decline for the rest of the year following the reopening of the Strait of Hormuz, which has caused crude oil prices to plunge. The national average for a gallon of gasoline was $3.92 on Thursday, down from a peak of $4.56 but still above the prewar average of $2.98. The Energy Information Administration predicts prices will average just over $3.50 per gallon by early 2027. AAA notes that sliding gas prices come as millions prepare for Independence Day travel, though GasBuddy forecasts the holiday average at $3.75, which would be the second most expensive July 4 on record. Chevron CFO Eimear Bonner said there is a lag between oil price drops and pump prices, but she expects further declines as conditions normalize.
Chevron CorpReopening of Strait of Hormuz increases oil supply, lowering crude prices and pressuring Chevron's upstream margins.