Average U.S. gas price falls below $4 a gallon

U.S. gas prices fell below $4 a gallon on average on Thursday. It is the first time since March that the average cost for a regular gallon has been that low. 

Gas prices are at $3.99 on average in the U.S., according to motor club AAA. The drop below $4 follows a 15% decline in the price of U.S. crude this month.

But fluctuations in gas prices remain across the country. In California, gas prices are averaging $5.64 per gallon, while in South Carolina it’s $3.58 per gallon.

Oil prices fell Monday to about $80 for a barrel of U.S. benchmark crude. That compares to $67 per barrel before the war and the price of over $120 a barrel reached earlier in the conflict.

It is anticipated to take weeks for oil to start flowing through the Strait of Hormuz again.

Before the war, the strait carried a fifth of the world’s crude oil. Now, it will take time for hundreds of ships trapped in the Persian Gulf to exit through the narrow strait. 

Gulf oil producers that throttled back production will need time to get the oil moving again. In addition, refineries typically pay for crude oil a month or more in advance, so even after oil prices drop, they won’t immediately be processing cheaper products.



(AP Photo Nam Y. Huh)