A collapse in crude oil futures prices is poised to deliver savings to American motorists, with top economist Mohamed A. El-Erian predicting that regular gasoline and diesel will crash through the $4 and $5 thresholds, respectively, in the coming days.

Imminent Relief at the Pump

The nationwide average for regular gas currently sits at $4.04 per gallon, with diesel at $5.18 per gallon, according to the latest data from AAA. However, those numbers are expected to slide further.

“The 20% plunge in oil prices over the past five days will translate into real relief for US households,” El-Erian stated. “Specifically, expect the nationwide average price for regular gas to drop below $4 a gallon, and diesel to fall below $5 in the coming days.”

This forecast highlights a welcome retreat for consumers. For context, AAA data shows the highest recorded national average for regular unleaded hit $5.01 in June 2022, while diesel peaked at an agonizing $5.81.

Deconstructing The Crude Collapse

However, when measured from the peak trading highs reached on June 8, the broader sell-off hit the 20% mark. Brent crude fell from $87.33 on Friday to $78.90, while WTI dropped from $84.88 to $76.16, during the publication of this piece.

A Sustained Downward Trend

This impending sub-$4 milestone marks the continuation of a cooling period for energy markets, as AAA reports pump prices have fallen for a third straight week.

Just one month ago, regular gas averaged $4.51, and diesel sat at $5.65. With the crude market’s massive recent correction finally filtering down to retail stations, drivers are on the verge of highly visible, widespread relief.

How Have Markets Performed In 2026?

The S&P 500 index has advanced 9.52% year-to-date. Similarly, the Nasdaq Composite index was up 13.52%, and the Dow Jones gained 7.48% YTD.

Meanwhile, Dow tracker, State Street SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), closed 0.58% higher on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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