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Gas prices have fallen for three straight weeks after record highs



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Gasoline costs have fallen for 3 consecutive weeks, offering a small measure of aid for motorists hammered by a record price surge throughout this yr’s inflation disaster.

The nationwide common value of fuel sank to $4.779 on Wednesday, marking the twenty second straight day of declines, in accordance with AAA knowledge.

The streak marked the longest consecutive string of value declines since April 2020, when the onset of the COVID-19 pandemic strangled demand on the pump.

“In the intervening time, People are spending almost $100 million per day much less on gasoline than when costs peaked a couple of weeks in the past, and that’s well-needed aid at a time when fuel costs stay close to data,” mentioned Patrick De Haan, head of petroleum evaluation at GasBuddy.

The nationwide common had hit an all-time excessive of $5.016 per gallon on June 14.

The aid in fuel costs has occurred as oil costs plunge on mounting fears amongst merchants that the US economic system is on the point of a recession. Oil costs are a key enter for fuel costs which can be later handed on to customers.

Gas prices
Demand has fallen in latest weeks.
Getty Photographs

Each the US benchmark, the West Texas Intermediate crude oil index, and the worldwide benchmark, the Brent Crude oil index, had been buying and selling close to $100 per barrel – nicely beneath their latest highs.  

In the meantime, fuel demand was sitting at 8.93 million barrels per day as of Tuesday, beneath the extent of demand throughout the identical interval one yr in the past.

“These provide/demand dynamics, together with lowering oil costs, have pushed pump costs decrease,” AAA mentioned in a weblog publish on the development. “If these developments proceed, drivers will seemingly proceed to see aid on the pump.”

Oil refinery
Oil costs are hovering close to $100 per barrel.
Anadolu Company by way of Getty Photographs

Even with latest declines, fuel costs are still hovering at historically high levels because the Russia-Ukraine warfare and provide chain shocks ripple by the worldwide vitality market. The price per gallon is almost two bucks increased than it was final yr, when the nationwide common was $3.134.

The constructive developments for motorists might not final lengthy. Reduction on the pump is unlikely to proceed in July, which is taken into account the height of the summer season journey season, according to AAA.

“Home gasoline demand dipped lately, which took among the strain off of pump costs. About 80% of stations are actually promoting common for underneath $5 a gallon,” AAA spokesperson Andrew Gross mentioned.

“However July is often the heaviest month for demand as extra People hit the street, so this development of easing costs may very well be short-lived,” Gross added.

Oil refinery
Oil costs have fallen as merchants react to the opportunity of a recession.
Bloomberg by way of Getty Photographs

President Biden has faced immense pressure to take actions that can carry sustained decrease costs on the pump.

The president drew sharp criticism over the weekend after he blamed excessive prices on fuel station firms and demanded they decrease costs.

Considered one of Biden’s most distinguished critics was Amazon founder Jeff Bezos, who accused the president of inserting a deceptive spin on the state of affairs.

“Ouch. Inflation is much too vital an issue for the White Home to maintain making statements like this,” Bezos mentioned. “It’s both straight forward misdirection or a deep misunderstanding of primary market dynamics.”