Gas prices are gradually trending downward.
After several months of record-high gas prices, due largely to the Russian invasion of Ukraine, gas prices in the United States are very gradually beginning to trend downward. Since the over $5 peak hit in June, gas prices have moved back downward, and as of this week, they’ve dropped to approximately $4 or less in most of the country.
According to Andrew Gross, a spokesperson for AAA, the primary cause for lower gas prices is dropping costs on oil. “Oil is the primary ingredient in gasoline, so less expensive oil is helpful in taming pump prices,” Gross said in an interview with WCVB 5 Boston. “Couple that with fewer drivers fueling up, and you have a recipe for gas prices to keep easing. It’s possible that the national average will fall below $4 this week.”
While prices are trending downward, however, analysts have cautioned that it will likely be a while before we see any major drops. At the very least, gas prices will likely remain in flux until the Russian invasion of Ukraine reaches some form of conclusion. To secure long-term change, the world’s various refining companies will need to update their refinement procedures.
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
“There is a structural problem with the oil and gas industry and that has to do with refining capability,” Jeff Klearman, portfolio manager at ETF company GraniteShares, told CNN. “Oil companies, not just in the United States but globally, have not expanded refining capacity. That continues to pressure gas prices.”