The average gasoline price across the US has dropped to $3.98 per gallon, driven by a decline in crude oil prices and a seasonal weakening in demand. This marks the first time prices have fallen below the $4 level since July.
According to data from the American Automobile Association (AAA), the national average price has fallen 4.1 percent compared to a week ago and 8.9 percent compared to a month ago. However, gasoline prices remain 29.6 percent higher than they were during the same period last year.
In the oil market, the January futures price for a barrel of Brent crude briefly dipped below $90 amid expectations that tensions between the US and Iran might ease. US President Donald Trump's statement that he does not see a need for a new military operation against Iran at this stage was considered one of the factors limiting supply concerns stemming from the Middle East.
We see momentum toward the end of this conflict. I think it will end quite soon.
The latest data released by the US Department of Labor also showed that the pace of increase in energy prices slowed in October. While the Consumer Price Index rose 0.4 percent on a monthly basis in October, the energy index increased by 0.7 percent in October, following a 5.2 percent rise in September. The increase in the gasoline index slowed to 1 percent in October from 9.1 percent in September.
News Source: 12punto
