Kiplinger’s Economic Outlooks are written by the staff of our weekly Kiplinger Letter and are unavailable elsewhere. Click here for a free issue of The Kiplinger Letter or to subscribe for the latest trends and forecasts from our highly experienced Kiplinger Letter team.
Spring is arriving across portions of the United States, and the return of warm weather often coincides with a seasonal increase in gasoline prices. Partly, that is due to the switchover that refineries make, to producing summer-blend gas formulations, which are costlier than winter blends. Also, Americans generally start driving more in the spring as vacation travel ramps up. But so far, these impacts aren’t being seen at gas stations. The national average price of regular unleaded actually slipped a few cents this week, and is now at $3.11 per gallon. Diesel is averaging $3.67. Both are little changed from a month ago.
We still look for gas prices to trend higher this spring. But the rise could be muted, with regular-grade gas staying below $3.50 on average nationwide.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
A major reason that retail fuel is holding steady: Crude oil prices have edged lower after trading in a tight range this winter. Benchmark West Texas Intermediate crude recently traded near $69 per barrel. Hopes for a cease-fire between Russia and Ukraine are likely one reason for the recent dip in oil, which had been trading in the low $70s. A cease-fire could lead to reduced sanctions on Russia’s oil exports. Meanwhile, OPEC has been considering whether to restore some of the exports it took off the market in recent years to keep prices higher. And U.S. oil production remains near record highs. So overall, the global oil market does not appear to be lacking for supplies, and may even face a bit of an oversupply situation. We look for WTI to trade from $70 to $75 per barrel this spring as ample supplies are roughly balanced by a seasonal increase in demand.
Natural gas prices have eased a bit, but they remain well above their low levels of a few months ago. The benchmark gas futures contract recently traded near $4 per million British thermal units. Not long ago, it was closer to $2. The cold winter in the United States has helped to trim what had been higher-than-normal supplies of gas in underground storage. In fact, underground storage reservoirs are now less full than normal for this time of year. That should continue to support gas futures prices, keeping them between $3 and $4 per MMBtu this spring.
Related content
- Gas-Saving Tips That Actually Work
- Who Controls Gas Prices in the US?
- Save Money on Heating Costs With These Easy Solutions
-
10 Best High-Yield Savings Accounts to Grow Your Tax RefundIf you're getting a tax refund this year and want to grow it, here are the best high-yield savings accounts to make it happen.
-
TurboTax: Features, Pricing and Filing OptionsIs TurboTax worth it in 2025? Explore the pros, cons, pricing tiers and standout features of this popular tax software to see if it fits your filing needs.
-
Stock Market Today: Markets Celebrate Trump's Tariff DétenteConsumer discretionary stocks led the 11 S&P 500 sector groups well into the green.
-
Social Security Fairness Act: Five Financial Planning Issues to RevisitMore money as a public-sector retiree is great, but there could be unintended consequences with taxes, Medicare and more if you're not careful.
-
Social Security Warning: Five Missteps Too Many Women MakeClaiming Social Security is complicated, and for women the stakes are high. What you don't know can cost you, so make sure you do know these five things.
-
To Buck the Third-Generation Curse, Focus on the Family StoryThe key is to motivate the next generations to contribute to the family business in a productive way. You can look to Lawrence Welk's family as a prime example.
-
Walmart's Transformative Ways Spark a 100,000% Stock ReturnWalmart's strategic store expansion and relentless cost-cutting have catapulted its share price over the years.
-
What DOGE is Doing NowThe Kiplinger Letter As Musk's DOGE pursues its ambitious agenda, uncertainty and legal challenges are mounting — causing frustration for Trump.
-
20 Ways to Clean Up Your Finances This SpringSpring cleaning is therapeutic and stops costly problems from building up around the home. Why not tackle the dusty corners of your finances at the same time?
-
How Roth Accounts Can Ease Your Tax Burden in RetirementStrategic Roth IRA conversions can set you up for tax-free income in retirement and a tax-free inheritance for the people you love.
