Consumers will be happy to know that gasoline prices have retreated in July.
The US consumer prices were 9.1 percent higher in June than they were a year earlier, the biggest annual increase in four decades, due in part to gasoline. Gas prices have fallen for 28 days in a row, the longest decline since the collapse of energy demand in the early 2020s. American consumers are spending less on gasoline every day than they were a month ago, according to energy analysts.
If a refinery on the Gulf Coast is knocked out by a storm, the trend could be reversed. The nation's inventories are growing because of the government's continued releases of oil from its strategic oil reserves.
On Wednesday, the average price per gallon of regular gasoline was $4.63 a gallon, a drop of more than 2 cents from the previous day. The average price has fallen for the last week and a half and for the last four weeks it has risen.
In Texas, Ohio, Illinois and California, prices have fallen by at least 16 cents over the last week.
The rise in gas prices has been a political hazard for President Biden.
The average price of gas has dropped by 40 cents in the last 30 days. There is room for American families. He encouraged oil companies to pass on their savings to consumers.
Lower-income families tend to drive longer distances to work and own older, less efficient vehicles when gasoline prices are high. Consumers see the ups and downs of inflation more widely because they observe the ups and downs on the street.
The drivers are liking what they see.
Melanie Wilson-Lawson, a health science professor, filled up her tank at a gas station in Houston because she was afraid that prices would rise but never fall. There is a significant difference now. It's big. She had cut back on dining out because of her financial worries.
Ms. Wilson-Lawson hoped Mr. Biden would encourage oil producers to increase supplies and bring down prices. How much more Saudi Arabia can produce is questionable. Libya's production has been hampered by political upheaval.
Food prices are affected by fuel. Diesel and jet fuel, which are declining but at a slower pace than gasoline, are very important to the profits of farmers, construction companies and airlines. The price of diesel is 16 cents cheaper than it was a month ago.
Diesel declined by 3 percent compared to 7 percent for gasoline. Jet fuel prices, which don't include taxes, are down over the last month. A large increase in exports to Europe is one of the reasons for the slower decline in domestic diesel prices. Since the global diesel market tightened, imports have dwindled.
The fall in prices at the pump has followed a slump in global oil prices, which have been falling over the last month amid signs that the world economy is slowing.
Since Moscow replaced European markets with sales to China, India and South America, there has been no need for Western sanctions on Russia. Expectations that the economy of China, the biggest importer of crude, would pick up have been unfulfilled because of the lock ups in important cities.
Patrick De Haan, head of petroleum analysis at GasBuddy, a Boston company that tracks fuel prices, said the trend of lower gasoline prices could continue for a fifth week as long as oil prices don't spike above $105.
Mr. De Haan said that they were still in the woods. If there is a spike in prices, we could see new records in August. For now, the plunge at the pump will continue.
The retail prices of gasoline and oil are based on the wholesale price, so the fluctuations of gasoline prices follow oil prices.
The price of oil has been volatile recently. On Tuesday, they plummeted by more than 7 percent and were slightly higher on Wednesday. The American benchmark, West Texas Intermediate, peaked above $130 a barrel after the invasion of Ukraine, while the international benchmark, known as the international benchmark, fell from a peak of nearly $140 a barrel. At the beginning of the year, both were less than $90.
In the second quarter the firm expects a global surplus of four million barrels a day. The drop in demand is significant according to the president of the organization.
The release of strategic reserves from the United States is reflected in the surplus. As soon as next year, a new source of demand will be added due to the end of releases. Chinese reserves are high and a recovery of demand is likely to happen sooner or later.
In the US, oil production is increasing though it is still lower than in other countries. The fear of a sudden drop in prices is one of the reasons why oil companies are cautious.
The price break is not permanent.
It is a nice reprieve in the middle of the summer because of more supply and less demand. I am hesitant to say that we won't see $5 gasoline again. The more moderate market would be affected by a storm.
The high prices of recent months seem to have affected driving decisions.
The report showed that gasoline demand had fallen by more than 10 percent in recent weeks. The previous week, gasoline inventories were reduced by 2.5 million barrels. It seems that prices should fall in the near future.
The price of copper has fallen in the last few weeks.
Not everyone is feeling better at the pump despite the fact that a gallon of gas is still more expensive than it was a year ago.
Doug Johnson is a sales manager for a company that provides services for the oil and gas industry. You are speaking cents and I am speaking dollars. We decided against taking a vacation this summer.
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