While the White House has praised the drop in gas prices, experts say the real reason for the decline is that record levels of inflation have forced Americans to stop driving. , postponed vacations, etc.
Gasoline prices have fallen to $3.94 per gallon for conventional unleaded fuel,on average nationally. This is considerably higher than he was at $3.18 a year ago at the moment. Just two months ago, the national average hit a record high of over $5 per gallon.
Prior to the recent decline, Russia's invasion of Ukraine exacerbated rising gas prices driven by supply chain swells.
President Biden announced theStrategic Oil ReservesOil out of 22} is the reason for the recent decline.
"[Russian President Vladimir] promised to deal with Putin's price hikes. I am,"the president tweeted on Aug. 11.. has used strategic oil reserves to bring quick relief to families - and has rallyed allies and partners around the world to do the same.
US oil prices fell to a six-month low of $86.53 a barrel on Tuesday. This is nearly $4 less than he was a week ago, but at this point he's more than $19 more than a year ago. US crude rose 1.6% to $87.92 a barrel on Wednesday.
But Biden's own Treasury Department acknowledged last month that the release had a mild impact, lowering gasoline prices by between 17 and 42 cents a gallon.
Experts told The Washington Post that the administration was unfairly talking to itself.
"Gas prices have fallen for multiple reasons, but the main driver is that Americans are spending less," said Anthony Schiabo, an analyst at Boston-based Lux Research. he told the Post.
Schiavo cited government data showing demand for gas fell to his 8.857 million barrels per day during his four weeks spanning July. This figure is far less than last year's 9.456 million barrels per day for the same period.
According to AAA, very high gas prices and record levels of inflation have prompted Americans to change their driving habits. A study found that nearly two-thirds (64%) of adults had changed their driving habits since March, with 23% of those surveyed saying they had made a "significant change." In order to cope with soaring gasoline prices.
Experts say declining demand is the main reason for the down I agree with you. gas price.
"Economists typically believe that a decline in both price and quantity in the market is associated with a decline in demand," said an economist at the University of Chicago and member of the White House Economic Council. Former chairman Thomas J. Phillipson said: An adviser under President Trump told the Post.
"So both gas prices and travel are falling, so demand must have receded. Increased supply must lead to lower prices." If it is a driver of It was the height of the pandemic-related lockdown.
will pose a bigger problem, Benjamin Dieker, director of public policy at the Alliance for Innovation and Infrastructure, told the Post.
Experts say oil It also cited other factors, such as a decline in speculative activity in the market and the continued COVID-related lockdown in China, which has also weakened demand.
So gas prices have fallen," Josh Answers, host of the online show The Trading Fraternity, told The Post.
"A big overlooked part of the recent rise in oil prices is the number of people trading futures, which keeps the price going up."
Answers Oil futures contracts have fallen more than 30% since last month, according to
"Another factor is China," he said.
"Over the past three months, all the lockdown news coming out of China has made many people rethink China's oil demand, which has led to a significant drop in demand." 86}