While gasoline prices are still $1.50 higher per gallon than this time last year, they fell sharply overnight in what was the largest one-day drop in nearly 15 years, according to AAA data.
The current price for a gallon of gasoline in the United States averages $4,721 on Friday, down from $4,752 per gallon on Thursday — down 3.1 cents. The weekly change is even more significant at 12.1 cents.
According to Patrick De Haan of Gas Buddy, more than 5,800 gas stations across the country offer gasoline for $3.99 a gallon or less.
Although they are on a declining trend this week, gasoline prices are still $1.58 higher than around this time last year. Gasoline prices continued to fall as crude oil prices rose on Thursday and Friday, but crude oil prices are still significantly lower week after week.
WTI crude was trading up $2.01 a barrel on Friday against $104.70 – nearly $4 lower on the week.
High gasoline prices have been a concern for the Biden administration, which has so far released more than 145 million barrels of crude oil from the country’s strategic petroleum reserves, pushing the SPR to levels not seen in decades to date. high prices at the pump.
But the falling price of crude oil – which accounts for about 60% of the price of petrol – this week was largely due to fears of a recession.
Another measure taken by the Biden administration is to ask OPEC+ to pump more, but the group was unwilling or unable to meet its production quotas.
Also contributing to the drop in gasoline prices is the demand for gasoline in the US, which, according to De Haan, is about 4.5% lower than last week.
By Julianne Geiger for Oilprice.com
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