It may not seem like it amid the inflated costs of living these days, but the median price of a gallon of gas in the U.S. has actually gone down since this time last year. According to AAA’s analysis, last week’s national average price at the pump fell nine cents from the week prior to hit $3.44 a gallon. That makes it 37 cents cheaper than last month and 32 cents less than it was during same week a year ago.
The organization attributes this change to a combination of factors. Firstly, new data from the Energy Information Administration (EIA) indicated that the demand for gasoline has dropped slightly from 8.86 to 8.7 million barrels per day. At the same time, the price of crude oil continues to fall (albeit, slowly) and, taken together, these developments are offering drivers a bit of a break right now.
How will gas prices continue to fluctuate in the weeks ahead? If the cost of oil remains reduced, Americans can expect to enjoy a reprieve as we head towards the end-of-year holidays. But, AAA spokesperson Andrew Gross cautions us not to count too heavily on that forecast.
“The oil market is very sensitive to global events, and fears of a widening war in the Middle East is keeping oil prices elevated for now,” Gross explained in last week’s update. But he still ventured to predict, “Domestically, drivers will likely see pump prices keep up this slow slide toward the holidays.”
This week, Gross said, “We still need to watch global events for the effect on oil prices, but for now, drivers will benefit from falling prices with every visit to the pump.” He also noted, “There are now thousands of gas stations selling regular below $3 a gallon and even a few that have dipped below $2.”
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