The national average price of regular gasoline in the United States fell below four dollars per gallon for the first time since July, reaching 3.9788 dollars per gallon, according to data published by the American Automobile Association on Tuesday.
Oil slide drives the drop
The decline tracks a sharp fall in world oil prices. Brent crude briefly dropped below 90 dollars a barrel, the first time it has done so since August. Gasoline’s national average is down 17 cents over the past week and roughly 39 cents over the past month.
Market optimism got a boost from statements by President Donald Trump suggesting the conflict between Washington and Iran, which has run for almost nine months, could end soon.
Gulf exports recovering
Supply fears have also eased as oil shipments from the Gulf region resume. Analysts at ING said Gulf crude exports, including pipeline shipments, have returned to between 80 and 85 percent of pre-war levels.
The same recovery in supply has pushed European gas prices lower, ING noted. For now, the combination of a potential diplomatic resolution and recovering exports has given drivers in the United States some relief at the pump.
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Source: American Automobile Association
