As the national average for a gallon of gas hits a new low of $3.137, questions arise about the real reasons behind this unexpected decline. While some may credit President Biden’s actions, skeptics argue that there’s more to the story.
Contrary to popular belief, gas prices often experience a downturn, and this recent dip is no exception. According to AAA, the current national average is 9 cents lower than last week, marking the lowest point in the year. But why is this happening?
Gas prices are "sleighing" it at the pump! Millions of Carolinians who drive to their destination will be gifted falling gas prices! NC's average sits at $2.91 – 9 cents cheaper than a week ago, while SC's average is $2.79 -11 cents less on the week! pic.twitter.com/eFTmONWO6I
— AAA Carolinas (@AAACarolinas) December 14, 2023
The cost of oil, a significant factor in determining gas prices, is struggling to stay above $70 a barrel. OPEC+ has also announced voluntary production cuts of around 2 million barrels, contributing to the downward pressure on oil prices. AAA spokesperson Andrew Gross shed light on this phenomenon, stating, “Historically, crude oil tends to drop nearly 30% from late September into early winter with gasoline prices trailing the play.”
What’s intriguing is the prediction that more than half of all U.S. fuel locations will have gasoline below $3 per gallon soon. Gross speculates, “By the end of the year, the national average may dip that low as well.” So, should we attribute this to government policies, or is there a broader trend at play?
Experts are anticipating a continuation of this downward trend, projecting a 7% cut in gas consumption this winter. This prediction aligns with a warmer winter expected due to the El Niño weather pattern, which reduces the demand for heating. As consumers enjoy the relief at the pump, the industry watches closely to see how long this trend will persist.
In a nutshell, the decline in gas prices is not solely a political maneuver but rather a confluence of global factors affecting the oil market. As winter progresses and demand for gas decreases, we may witness even lower prices at the pump.
