Gas Prices Fall for 3 Straight Weeks, Stay Above $4 Per Gallon

Ache on the pump is easing.

The average price of gas throughout the US has fallen for 3 consecutive weeks, and continued to fall on Monday, in accordance with AAA information.

“The nationwide common for a gallon of standard has been falling for 3 straight weeks, delivering some aid to drivers in the course of the busy summer time journey season,” AAA stated in a press release on Friday.

On the time of AAA’s launch, the typical worth of a gallon of fuel nationwide was $4.12, down from a excessive of $4.56 in Might. By Monday morning, the typical worth had fallen an extra 1.5% to $4.06.

Fuel costs spiked from lower than $3 in February after the beginning of the US-Iran conflict. The conflict crippled global oil supply by resulting in the closure of the Strait of Hormuz, a vital Iran-controlled waterway by means of which about 20% of the world’s oil and liquefied pure fuel flows. This, in flip, pushed crude costs sharply larger.

Since then, oil costs have jumped on escalations of the battle and fallen on any information of a possible peace deal or reopening of the Strait of Hormuz.

On Monday, oil prices dropped 5% after information that the 2 international locations had agreed to a tentative deal to reopen the strait, with Iranian officers saying the battle would finish on Monday evening. The worth of Brent crude, the worldwide oil benchmark, has fallen from near $120 per barrel in late April to round $83 as of 6 a.m. ET Monday.

Whereas the worth of gas is falling in tandem with the broader drop in oil costs, gas is still more than a third more costly than it was earlier than the battle started.

In some US states, fuel costs stay above $5 per gallon. In California, normally the most costly state for fuel, the typical worth per gallon is $5.74.