After hitting all-time highs, gasoline prices are finally dropping
R. Gelfenstein - Fears of a global economic slowdown have sent oil prices tumbling recently, less than a month after the national average price of gasoline in the United States first reached $5 per gallon.
Since the milestone was broken in the week of June 13, the average weekly price of gasoline fell to about R$ 4.75.
"All this talk about interest rates and recession is fear, the oil market is reacting to fear," said Andrew Gross, a spokesman for AAA.com.
The national average is down another 2.1c/gal since midnight to $4.739/gal- its possible we could eclipse the previous record drop of 3.1c/gal today, but due to oil's surge today, we likely will not see as much relief as we could have. We could head to $4.50/gal nationally.
— Patrick De Haan ⛽️📊 (@GasBuddyGuy) July 7, 2022
Some analysts expect a further fall in prices. Patrick De Haan, vice president of gasoline price monitoring website GasBuddy.com, tweeted Thursday that recent drops in oil prices could send gasoline prices down as much as $4.50 per month.
Oil industry analyst Andy Lipow said, "I've had six drops in the price of oil in my career in the oil industry, a recession can trigger a seventh," he wrote.
Due to the Russian invasion of Ukraine, oil traders do not have access to Russian oil supplies, creating a shortage that has helped boost prices this year. A recession, Lipow said, could turn the tide.
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