According to the latest Lundberg survey, U.S. gasoline prices fell $0.06 in the past two weeks to an average of $3.52 per gallon. And since its 52-week high on June 20, RBOB gasoline futures are down 12 percent.
So what does that mean for the U.S. economy?
Gina Sanchez, founder of Chantico Global, believes gas prices are headed lower, helping the economy.
“As gas prices fall, then we should see continued rebound in consumer spending,” said Gina Sanchez, the founder of Chantico Global and a CNBC contributor.
And she thinks gasoline could get cheaper still.
“Crude oil prices have actually recovered to levels that we saw before we saw all the geopolitical risk that cropped up,” she said. “We’re continuing to see a fall-off in crude oil prices, which should continue to translate into gas prices.”
Richard Ross, global technical strategist at Auerbach Grayson, also sees gasoline prices continuing to fall. He notes that the RBOB futures topped out at about $3.13 per gallon in the summers of 2013 and 2014. Beginning in July, the price of RBOB fell below two support key support levels, according to Ross’ charts.
“That tells me that there’s further to go here on the downside for gasoline,” said Ross, a “Talking Numbers” contributor. “I think we’re going to test the low end of an even longer trading range down around that $2.50.” The RBOB contract settled at $2.75 on Monday.
Interestingly, Ross says gasoline prices is falling despite the abundance of reasons for them to rise.
“We call that a bearish divergence, which in this case, is actually bullish for consumers,” he said. “Gas goes lower and that could provide a little bit of a tailwind here for the consumer— [who] could really use a little bit of a tailwind.”
To see the full discussion on gasoline prices, with Sanchez on the fundamentals and Ross on the technicals, watch the above video.