Gas prices are falling and may fall more
U.S. gas prices are steadily moving lower as autumn keeps drivers closer to home. Oil prices are down, too.
Yes, it's true. Gasoline prices are falling across the United States.
And the declines are starting to be meaningful, according to data from the American Automobile Association. In a few places, in Georgia and elsewhere, pump prices have fallen below $3 a gallon, a trend that should spread.
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AAA's survey Sunday showed regular unleaded gas averaging $3.709 a gallon nationally, down 1.3 cents from Saturday and 10.6 cents, or 2.8%, from Oct. 1.
The AAA national average price peaked at $3.881 a gallon on Sept. 18 and has fallen 18 times in the 20 days since. That's a decline of 17 cents or 4.4%. The all-time high was $5.016 a gallon on June 14, 2022.
Whether or how long that trend can continue is uncertain. Saudi Arabia and Russia still want to keep prices high and have been pulling crude oil off global markets.
And it is not clear how oil prices will react with violence erupting this weekend between Israel and Palestinian insurgents.
Pump prices still continue to be highest in California, whose average price Sunday was $5.811, down from $6.063 a week ago and from $6.335 a year ago. The lowest statewide average was Georgia's $3.156 a gallon, down slightly in a week but off 11.6% from a month ago. Prices hit $2.869 in Atkinson County, in the south central part of the state.
AAA's national price has been below $3 a gallon since May 2021.
The gas price declines come as crude oil prices have started to come down. West Texas Intermediate, the benchmark U.S. crude, closed Friday at $82.79 per 42-gallon barrel. That was up 48 cents from Thursday but down $8, or 8.8%, from the week before. The price is up 3.15% on the year. WTI hit a closing peak price of $93.68 a barrel on Sept. 27.
Oil stocks moved lower in response to falling crude prices. Oil giants Chevron (CVX) - Get Free Report and ExxonMobil (XOM) - Get Free Report were off 3.8% and 8.9%, respectively on the week. Exxon's decline was partly due to reports it is trying to acquire Pioneer Natural Resources (PXD) - Get Free Report for as much as $60 billion. Pioneer is a large oil-and-gas producer heavily invested in the Permian Basin of Texas.
The Energy Select Sector SPDR Fund (XLE) - Get Free Report, which tracks the energy industry, was off 5.2% on the week and is now off 2% on the year.
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