Drivers are seeing some relief at the pump heading into the summer travel season, but global events could quickly reverse that trend.
AAA reported Thursday that the national average price for a gallon of regular gasoline fell 12 cents over the past week to $4.42, driven largely by declining crude oil prices amid reports of possible peace negotiations involving Iran.
The drop follows several weeks of volatility in energy markets. While prices are moving lower for now, AAA cautioned that the situation remains fragile and that oil prices could surge again if diplomatic efforts break down.
Despite the recent decline, gas prices remain at their highest levels in four years. The national average is up roughly 26 cents from a month ago and more than $1.25 higher than at the same time last year, according to AAA data.
At the same time, demand for gasoline is increasing as the summer driving season begins. New federal data show gasoline demand rose from 8.76 million barrels per day to 9.25 million barrels per day last week, while domestic fuel supplies declined.
Oil prices also moved sharply lower during the week. West Texas Intermediate crude settled Wednesday at $88.68 per barrel after falling more than $5 in a single trading session. U.S. crude inventories declined by 3.3 million barrels and remain slightly below the five-year average for this time of year.
For electric vehicle drivers, charging costs remained unchanged. AAA said the national average price at public charging stations held steady at 41 cents per kilowatt-hour.
California continues to have the nation’s highest average gasoline price at $6.07 per gallon, while Indiana has the lowest average at $3.81.
Analysts say the direction of fuel prices over the coming weeks will largely depend on global oil markets and geopolitical developments, even as seasonal demand pushes upward pressure on prices during the busy summer travel period.
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