US gas prices could fall even further after hitting 6-month lows as China steps up its fuel exports, analysts say

As China ramps up fuel exports, analysts expect US gas prices to fall as well.

Chinese refiner supplied more gasoline to the market in August than they did a year ago, according to customs data.

Americans are changing their driving habits in the face of high inflation as the price of gas in the US is already at its lowest level in six months. Analysts think that the rise in China's exports will lead to a deeper fall.

When the world's largest oil importer ends up with an excess supply of refined fuel products due to lower domestic economic activity, that is the reaction, according to the head of commodity strategy at Saxo Bank.

US gasoline prices are already at their lowest since March and may weaken further.

The average price of gas in the US has fallen for 97 days in a row after setting a record high of $5.01. Since then, its price has fallen.

China has been able to export more gasoline because there is less demand. Businesses are having to shut down due to strict COVID-19 restrictions and the country's worst ever heat wave.

As Beijing ponders whether to bring in new targets to boost the stagnant economy, the country's refiners and traders have applied for an additional 15 million tons of fuel export quota.

In June and July, the government lifted export targets.

"If the fuel export quota is approved, the flood of gasoline and diesel will hit a market already focused on a slowdown in demand due to global growth concerns."

Consumers are already troubled by high inflation and the lower prices of fuel will give them some relief.

The White House said the fall in gas prices was giving people some relief.

Americans are getting some breathing room at the pump as we continue on the fastest decline in gas prices in over a decade.

The seasonal decline in gasoline prices is reflected in the fall in prices. In the US, the summer driving season ends around Labor Day, and the last months of the year are cold.

"If the news is true that China is going to approve the release of additional fuel exports, this would put further pressure on gasoline prices," said the strategist.

Diesel prices, currently at around $5 a gallon, would tend to get lower, although seasonal demand for diesel and gasoil usually grows in the fourth quarter.

Gas prices have fallen due to an easing in crude oil prices. The downward trend continued Monday on pessimism about Chinese demand, with global benchmark crude sliding to $91 a barrel at last check, and the price of West Texas Intermediate crude down to $84.74 a barrel.

US gas prices have fallen below $4 a gallon but Americans should expect another rally this winter according to Bank of America.