Gasoline is less than $4 a gallon, a price not seen since March: how it got there

AAA reported that as of this week, the national average for a gallon of regular gas dropped 6 cents to $3.99which is good news, since the national average had not been below $4 a gallon since March 5.

In the spring, oil prices soared in reaction to the Russian invasion of Ukrainewhich took the national average to a new all-time high.

According to new data from the Energy Information Administration (EIA), gas demand increased from 8.54 million barrels per day (b/d) to 9.12 million b/d last week. However, the rate is 307,000 b/d lower than last year.

According to the EIA, total domestic gasoline stocks decreased by 5 million barrels (bbl) to 220.3 million bbl.

AAA notes that although demand for gasoline has increased and supply has shrunk, lower oil prices have helped drive down gas station prices: “If oil prices continue to fall, drivers are likely to continue to see pump prices decline”.

At the close of the formal trading session on Wednesday, WTI increased $1.43 to settle at $91.93. Crude prices rose after the US Bureau of Labor Statistics reported a smaller-than-expected rise in inflation last month of 8.5%.

The rise in market optimism helped boost prices despite the EIA reporting total domestic crude supply rose by 5.4 million barrels last week.

As of August 12, AAA reports that the average price of a gallon of gasoline in the United States is $3,978..

Since last Thursday, these 10 states have seen the largest declines in their averages:

Colorado, -21 cents
Arizona, -21 cents
Illinois, -19 cents
Maine, -19 cents
– Ohio, -18 cents
– Kansas, -18 cents
– West Virginia, -18 cents
– Wyoming, -17 cents
– Arkansas, -17 cents
– Indiana, -17 cents

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