Gas prices went through the roof in the US in 2022, but the markets appeared to have eased a bit over the last 3 weeks though it is a long journey southwards before it can be termed as normal. The prices have dropped for 3 weeks at a stretch. This is the longest streak since the beginning of the pandemic.
The gas prices have come down even as the war in Europe rages on. The gas prices in all the states were more than $4.40 per gallon and even went up to $6.40 in some towns in California. One city saw the prices drift near the $10 mark.
But the gas prices have decreased constantly for 3 weeks in a row, according to data released by AAA. It is the longest declining streak since the nation shut down for the pandemic in April 2020.
Gas Prices Still Remain Much Higher Than It Was A Year Earlier
The present average gas prices are at $4.80 a gallon, a decline from $4.881 last week. But gas prices remain high when equated with the prices a year back when it was $3.134.
There has also been a drop in demand as consumption hit its lowermost point since 2014 for this period, but excluding the data for 2020. It appears that the US gas market is finally cooling off.
Money managers are also holding bullish bets instead of bearish ones on oil futures since November.
The stockpiles of oil have also seen an increase by over 4M barrels in the last couple of weeks. The figures are normally the opposite at this period of the year.
The downward trend should come as a relief for the President as he appears to be running out of options in reining in prices across various sectors.
But the future still appears bleak for oil prices as crude stockpiles continue to be low, and the prices remain elevated. Refineries continue to run close to full capacity.