Page 12 - aruba-today-20220812

A12 BUSINESS
Friday 12 august 2022
Gas prices dip just below $4 for the first

time in 5 months

By DAVID KOENIG
AP Business Writer
DALLAS (AP) — Gasoline
prices have dipped under
$4 for the first time in more
than five months good
news for consumers who
are struggling with high
prices for many other es-
sentials.
AAA said the national av-
erage for a gallon of regu-
lar was $3.99 on Thursday,
down from the mid-June
record of $5.02. However,
that’s still about 80 cents A motorist fills up the tank on a sedan, on July 22, 2022, in
higher than the average a Saratoga, Wyo. Associated Press
year ago.
Energy is a key factor in the an expert on energy pric- will come down because
cost of many goods and ing and an economics of a lot of delayed main-
services, and falling prices professor at the University tenance that can’t be de-
for gas, airline tickets and of North Carolina at Char- layed indefinitely.”
clothes are giving consum- lotte. “People were starting Prices at the pump are like-
ers a bit of relief, although to watch their driving.” ly to be a major issue head-
inflation is still close to a Schwarz expects oil prices ing into the mid-term elec-
four-decade high. to remain relatively sta- tions in November.
Glen Smith, a for-hire driver, ble at least for the next Republicans blame Presi-
sized up the price $3.85 a month or so, particularly dent Joe Biden for the high
gallon while waiting be- after OPEC and partners gasoline prices, seizing on
tween rides at a gas station including Russia agreed his decisions to cancel a
in Kenner, Louisiana. to only a small oil produc- permit for a major pipeline
“I’m not tickled pink, but tion increase in September, and suspend new oil and
I’m happier it’s less than which won’t be enough to gas leases on federal lands.
what it was,” Smith said. drive prices lower. Biden said over the week-
“There for a while, every Christian vom Lehn, an end that a family with two
two days I put $50 of gas in economics professor at cars is saving $100 a month
my car. It’s $12 to run from Brigham Young University, because prices have
the airport to drop off in the said the price of oil is the dropped from their peak in
city $12 a trip!” key factor for gasoline, but mid-June.
Oil prices began rising in that seasonal trends could “That’s breathing room,”
mid-2020 as economies also keep prices from surg- he tweeted. “And we’re
recovered from the initial ing again. not letting up any time
shock of the pandemic. “We are coming to the end soon.”
They rose again when the of summer, and summer is Exxon said it has increased
U.S. and allies announced a peak travel season, so oil production. The CEO of
sanctions against Russian demand is naturally going Chevron said Biden was try-
oil over the country’s war to fall,” he said. “That is cer- ing to vilify his industry.
against Ukraine. tainly contributing to the Biden has also ordered the
Recently, however, oil most recent decline” in gas release of oil from the na-
prices have dropped on prices. tion’s strategic petroleum
concern about slowing The average gas price has reserve this year. While not
economic growth around dropped 58 straight days, large enough to account
the world. U.S. benchmark but that streak will end for the drop in gasoline
crude oil has recently soon, predicted Tom Kloza, prices, the extra supply
dipped close to $90 a bar- head of energy analysis at from reserves might have
rel from over $120 a barrel the Oil Price Information helped stem the rise in
in June. Service. He said the indus- pump prices, according to
It is unclear whether gaso- try will face challenges to analysts.
line prices got so high that meet gasoline demand for The nationwide average
consumers cut back on the rest of the year. for gas hasn’t been under
their driving. Some experts Kloza noted that it’s still $4 since early March. Prices
believe that is true, al- early in the hurricane sea- topped out at $5.02 a gal-
though they acknowledge son, which in the past has lon on June 14, accord-
that the evidence is largely shut down some of the na- ing to AAA. They declined
anecdotal. tion’s biggest refineries that slowly the rest of June, then
“I don’t know that $5 was sit in hurricane-prone areas began dropping more rap-
the magic amount. I think of the Gulf Coast; the Gulf idly. The shopping app Gas-
it was the amount of in- of Mexico is speckled with Buddy reported that the
crease in a short period of oil-producing platforms. national average dropped
time,” said Peter Schwarz, Also, he said, “refinery runs under $4 on Wednesday.q