Gas Prices in the US Hit Lowest Point of the Year
According to AAA, the national average price for a gallon of gas in the US is on a downward trend. As of Tuesday, the average price stood at $3.137, which is 9 cents lower than the previous week’s average. Furthermore, this week’s prices have reached the lowest point of the year so far.
The decline in gas prices is closely tied to the struggle of oil prices to stay above $70 per barrel. OPEC+ recently announced voluntary production cuts, leading to a decrease in gas prices. Additionally, historical trends show that crude oil drops by nearly 30% from late September into early winter, with gasoline prices following suit.
Experts predict that more than half of all US fuel locations will soon have gasoline below $3 per gallon. There is even a possibility that the national average may dip that low as well. This is certainly welcome news for consumers who have been burdened by high fuel costs in recent months.
It’s not just the US that is experiencing lower gas prices; it’s a global trend. Despite lower demand, increased gas production has contributed to the decrease in prices internationally. This downward trend is expected to continue as OPEC+ tightens its grip on the market and plans to increase production in the second half of 2024.
Looking at individual states, Texas is currently enjoying the lowest average gas price at $2.60 per gallon. Mississippi and Oklahoma follow closely behind. On the other end of the spectrum, California and Hawaii are grappling with the highest average gas prices at $4.70 per gallon.
Some states have witnessed significant decreases in gas prices. Colorado leads the way with a decrease of 12 cents, closely followed by Utah and Idaho. Other states, including California, Florida, and Indiana, have also experienced noticeable drops in gas prices.
Overall, the decrease in gas prices across the US and globally is a positive development. It provides some relief to consumers and businesses alike, who have been grappling with high fuel costs. As we move towards the end of the year, it will be interesting to see if this downward trend continues or if other factors come into play that could impact gas prices.