Gas Prices Approach $4/Gallon After Falling for 7 Weeks
Washington, DC, August 3, 2022-U.S. gas prices have fallen for seven straight weeks and are approaching an average price of $4 a gallon, easing the pain of record-high fuel costs amid shrinking global demand for oil, reports the Wall Street Journal.
“The average cost of a gallon of regular unleaded gasoline sank to $4.19 Tuesday, the 49th straight day that prices have declined, according to OPIS, an energy-data and analytics provider. That is a 17% decline from the previous high of $5.02 a gallon set back on June 14, according to OPIS.
“Global demand for oil has fallen in recent weeks as economic growth has slowed around the world, including in China, analysts said. Demand data and consumer surveys also suggest Americans are driving less.
“That global drop-off in oil demand has led to an improvement in oil supplies, resulting in lower oil and wholesale fuel prices, analysts said. Americans, as a result, are paying less at the pump than they were at the beginning of the summer.
“‘You’ve seen tremendous drops at wholesale prices really in every nook and cranny of the country,’ said Tom Kloza, global head of energy analysis for OPIS.
“Whether gas prices keep moving lower depends on several factors. Potential hurricanes around the Gulf of Mexico could force refineries offline, and unanticipated disruptions from the Russia-Ukraine conflict could both drive gas prices up again, analysts said.
“Patrick De Haan, head of petroleum analysis at GasBuddy, said he thinks the U.S. hit peak gas prices in June. The average price of gas could fall under $4 a gallon over the next week or two if there are no major disruptions to supplies, Mr. De Haan said.”