National Gas Average Drops Below $4.06 Amid Crude Oil Price Decline
The national average price for a gallon of regular gasoline has fallen to $4.06, down three cents from last week's average. This decrease is attributed to lower crude oil prices, which are currently in the $70 per barrel range. The Strait of Hormuz, a key shipping route, is expected to resume normal operations, contributing to the optimism surrounding the price drop.
The Energy Information Administration (EIA) reports that gasoline demand decreased slightly last week from 9.04 million barrels per day to 9.03 million. Additionally, total domestic gasoline supply decreased from 211.3 million barrels to 209.7 million. Gasoline production also decreased, averaging 9.6 million barrels per day.
The current national average price of $4.06 is below the average prices in many states, with half of them paying below $4.00 per gallon on average. The EIA notes that gas prices typically decrease this time of year as schools and universities begin their fall semesters, resulting in fewer road trips.