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In the last few weeks, the price of gasoline has fallen almost to the levels of last February, before the start of Russia’s invasion of Ukraine, a saving that is already felt in the pockets of the Americans.
However, it looks like the price could drop further towards the holiday season and the last days of the year: GasBuddy projected that the average cost per gallon at the pump could fall below $3 dollars.
“People are realizing that they could spend $1200 again dollars to fill your tank instead of $60 dollars”, said Emma Rasiel, professor of economics at Duke University, to the newspaper The Washington Post.
Last June, the price of gasoline hit a record high. toric by exceeding $5 dollars per gallon on average nationwide, just when inflation was at its highest point.
However, although the price of gasoline has come down considerably, the prices of other products have not decreased evenly and there is no indication that this moment of more affordable fuel is driving down the cost of other things.
Why are gasoline prices going down
Gas prices are going down because the Oil and gas demand is falling as countries brace for recession, coronavirus outbreaks in China threaten major financial disruption and drivers cut back on consumption of gas while trying to save money.
They also help keep prices down Right now, some key EE refineries .UU. that returned to producing gasoline after months of being out of service for maintenance and repairs.
But an equally important factor is the situation in China, as its leaders signal that new coronavirus lockdowns are imminent, sparking protests in across the country, the expected economic fallout has turned oil traders bearish.
Only China accounted for 16% of world oil demand last year, according to research firm Capital Economics, which projects its buying of oil to fall by 1 million barrels a day in December as coronavirus infections spread .
The effect of such a fall on world oil markets is considerable, reducing the price of Brent crude up to $ dollars per barrel, or more than percent.
However, although the cost of gasoline for much of last year was a major factor in the inflation that hit the United States and other countries, the fall in prices fuel costs are doing little to stabilize the economy.
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