Post by bonnasuttadhar225588 on Feb 15, 2024 6:23:59 GMT
According to information published in The New York Times , after several months in which gasoline prices in the United States were one of the most visible symbols of inflation, today they have a new distinction: The falling price of gasoline. This reversal of the price escalation, which accompanied the Russian invasion of Ukraine, will provide relief to American consumers who faced high costs to purchase any type of essential items. Gasoline down The drop in gasoline prices was triggered by a decline in global energy demand, which drove down oil prices. Therefore, the national average price of regular gasoline was $3.33 per gallon for Thursday, December 8. Which was equal to the 2021 price, which was around At their peak, gas prices were above $5 per gallon in mid-June of this year. Likewise, the price of West Texas Intermediate crude oil, the US benchmark that serves as the main driver of gasoline prices, fell to its lowest level of the year on Thursday, crossing below $72 per barrel, after trading above $120 in March and June.
Therefore, the news of the falling gasoline price has been a blessing for the current administration led by Joe Biden, who has been using the country's Strategic Petroleum Reserve in an effort to contain hydrocarbon prices. low-cost-of-gasoline- Oil companies generate record profits Although gasoline prices have fallen from recent highs, they remain higher than in recent years. In addition, high oil and Saudi Arabia Email List natural gas prices have fueled exorbitant profits for energy giants such as Exxon Mobil and Chevron. In fact, the net income of global oil and gas producers is expected to double in 2022, to an “unprecedented” $4 trillion, the International Energy Agency said in a recent report. Falling gas prices may also be good news for the Federal Reserve — also known as the Fed, the U.S. central bank — as it tries to curb inflation by raising interest rates and slowing the economy. Still, economic impressions could be complicated; as consumers spend less on gasoline, they have more cash for other purchases. It's good for households and it's good for affordability. But at the same time, easing pressure on gasoline prices leaves more money to spend elsewhere, which could give a boost to short-term inflation, which the Fed has to combat.
Beth Ann Bovino, chief US economist at financial analysis firm S&P Global. Uncertain outlook for hydrocarbons While the drop in gasoline prices has been greatly felt, some states still have prices well above the national average. In California, tough emissions standards increase the cost of refining, so the average price of regular gasoline was $4.62 a gallon on Thursday, down from $6.44 in June. In several Southern and Midwestern states, however, prices are below $3 per gallon, mainly because they have minimal taxes on gasoline, and demand is lower in rural areas, according to AAA Spokesman Devin Gladden . . Gasoline began rising in mid-2020 as economies recovered from the economic impacts of the COVID-19 pandemic. But new increases were experienced when the US and its allies announced sanctions against Russia for the invasion of Ukraine. While lower gasoline prices are expected to continue, there are factors beyond the including the global economic slowdown, that make the outlook uncertain.