After a period of high gas prices, primarily due to the conflict in Ukraine, gas prices in the United States are gradually beginning to decline. Since hitting over $5 in June, gas prices have been decreasing and are now around $4 or less in most areas of the country.
Andrew Gross, a spokesperson for AAA, attributes the lower gas prices to the decreasing costs of oil. In an interview with WCVB 5 Boston, Gross stated, “Oil is a key component in gasoline production, so lower oil prices help in reducing pump prices. Combined with fewer drivers filling up, gas prices are expected to continue to drop. It’s possible that the national average could fall below $4 this week.”
Although prices are on a downward trend, analysts warn that significant drops may take some time. Gas prices are likely to fluctuate until there is some resolution to the conflict in Ukraine. To achieve lasting change, refineries worldwide will need to update their processes.
Gas prices have been trending downward for more than 50 consecutive days, giving drivers some much-needed financial relief at the pump.
But nobody’s popping the champagne just yet. https://t.co/l6SVaaJNdS
— CNN (@CNN) August 9, 2022
Jeff Klearman, a portfolio manager at ETF company GraniteShares, highlighted a structural issue within the oil and gas industry related to refining capacity. He mentioned, “Oil companies globally, not just in the US, have failed to increase their refining capabilities. This has continued to put pressure on gas prices.”
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