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Americans look past fuel cost, bad weather condition to set July 4th travel record

High fuel costs and the risk of a cyclone are not expected to dampen Americans' desire to hit the roadway this summer, with visitors preparing for record travel to start Fourth of July holiday festivities.

Driver group AAA anticipates a record of almost 71 million people to circumnavigate the U.S. Independence Day vacation, development comparable to a pre-pandemic trajectory.

Some 60 million people will drive with nearly 6 million flying to their destinations, while around 4.6 million individuals will take buses, trains or cruises during the vacation period, according to AAA's projection.

We've never seen numbers like this, AAA spokesperson Andrew Gross said. 2024's travel appears to be what 2020 would have actually been, had it not been for the pandemic, he included.

U.S. summertime travel will be closely seen from numerous fronts this year, as it might offer central bank authorities and policymakers a crucial step of customer sentiment in an election year.

Inflation was the same in May even as customer spending rose, improving hopes that the U.S. Federal Reserve may be able to manage inflation while preventing a recession.

Gasoline costs have actually reduced over the past couple of months, with the nationwide typical price for a gallon of motor fuel at $3.50. on Tuesday, a 3-cent decline from last year. Domestic airfare is. 2% less expensive than in 2015, with an average domestic big salami. costing $800, according to AAA scheduling data.

' WANTING TO TRAVEL'

Regardless of current decreases, fuel prices stay well above. historic levels. The average price for a gallon of fuel. was $2.74 during the July Fourth week in 2019, and the weekly. average cost from 2015 through 2019 was under $2.50 a gallon,. according to U.S. Energy Information Administration information.

Still, tourists' travel plans are mainly unaffected by. greater costs this year, according to a survey of over 1,000. individuals by vehicle retail group American Trucks.

Four-week average U.S. gas demand hit an one-year high. of 9.2 million barrels daily (bpd) last week as merchants. stockpiled ahead of the vacation, EIA information revealed on Wednesday. Four-week average jet fuel need was at 1.7 million bpd,. similar to a seven-month high hit earlier in June.

What we have actually discovered is that it's more about the rate of. modification than the price itself that impacts the mind of. customers, stated John LaForge, head of real asset strategy at. Wells Fargo Investment Institute.

Given that the cost of gas has actually stagnated drastically. higher or lower in the past 6 months, consumer mind is. mostly unaffected by it, LaForge stated.

In the meantime, U.S. getaway travel is not likely to be affected by. Hurricane Beryl, which has actually brought destruction to some Caribbean. Islands since Monday, however is anticipated to damage substantially as. it reaches Mexico's Yucatan Peninsula by Thursday night.

U.S. fuel stocks are likewise much better equipped than they have. remained in recent years, providing motorists a buffer from abrupt. price shocks in case the cyclone disrupts refining operations.

U.S. fuel stockpiles stood at around 231.7 million. barrels in the week ended June 28, 5.6% higher than the same. time last year, EIA data revealed. Jet fuel stocks were 4.7%. higher than last year.

Americans are optimistic and wishing to travel, there's no. denying it, GasBuddy analyst Patrick De Haan stated.

(source: Reuters)