The average US gasoline price has fallen below $4 a gallon for the first time since March.
The average price of gas fell to $3.99 a gallon on Tuesday, more than 20% below the record high of $5.03 hit in June, according to GasBuddy.
The drop has been driven by a fall in oil prices which have fallen more than 20% from their June highs as traders bet that a major slowdown in global growth will slash the demand for energy in the coming months.
The US benchmark oil price was almost 30% below its June high.
Analysts say that a number of factors have contributed to the fall in oil and gas prices. President Joe Biden's releases from strategic oil reserves and an increase in refinery capacity are included.
The average price for a gallon of gas was $4.06 on Wednesday, down from a high of $5.016 in June.
Patrick De Haan, head of petroleum analysis for GasBuddy said, "We've never seen anything like 2022, highlighted by once-in-a-lifetime events including the ongoing Covid-19 pandemic, which caused numerous imbalances, exacerbated by Russia's war on Ukrainian."
We've seen gas prices jump from $3 to $5 and now back to $3.99, in ways we've never seen before.
The issues that led to skyrocketing prices aren't completely put to bed despite the recent drop in gas prices.
Gas prices are expected to go back up to around $4.35 a gallon in the fourth quarter and average $4.40 over the course of the next ten years, according to Goldman. According to the bank, global supplies of oil are still low and that demand from US drivers is likely to increase after signs of weakness.
The price of gas is still more expensive than it has been in the past. In August 2021, the average price was $3.20 a gallon, and in August 2020 it was $2.15 a gallon.
All Rights Reserved © 2024
