GRAND RAPIDS, Mich. — Oil prices fell to their lowest levels in nearly three months after the U.S. announced an agreement with Iran to end the war over the weekend, and drivers in West Michigan could soon feel the impact at the pump.
“If the strait remains open, if this deal remains in place and is executed on gas prices may remain below the $4 a gallon mark for the rest of the summer across West Michigan,” GasBuddy analyst Patrick De Haan said.
While prices may come down, De Haan warns the process will be a slow burn. President Trump is touting pre-war prices at the pump following the agreement, but the Department of Energy says the Strategic Petroleum Reserve has fallen to its lowest levels since the 1980s. It could take up to a year to build back to pre-war levels, meaning pre-war prices could also be a ways off.
“We may not see gas prices falling back to their pre-war level until late this year, or into early, or even mid next year,” De Haan said.
We are halfway through June — typically a time of peak gas prices as summer heats up — but that trend could reverse this year if the war in Iran officially comes to an end. Officials on both sides say an agreement is on the table…