After sinking every day for more than three months, US gas prices edged higher today. Here's what to expect in the months ahead.
After sinking every day for more than three months, US gas prices edged higher -- by a penny -- to $3.68 a gallon, on average Wednesday, according to AAA.
The plunge in gas prices was driven by a series of factors, including stronger supply and weaker demand as drivers balked at high prices and unprecedented releases of emergency oil by the White House. At the same time, Russia's oil flows have held up better than feared despite sanctions and the war in Ukraine. Russia's invasion of Ukraine, and the sanctions that followed, that helped to spark the steep rise in oil and gas prices. The average price the day of the invasion stood at $3.54 a gallon, just a bit lower than it is today. Russia's announcement Wednesday that it would increase its mobilization of troops helped lift crude oil futures 2% in global markets.
US refining capacity remains limited. And OPEC along with other oil-producing nations recently agreed to cut production. Both put upward pressure on prices. Cheaper gas has been a major boost to the US economy, easing inflationary pressure and giving Americans extra cash to spend. Since the typical US household uses about 90 gallons of gas a month, the drop in gas prices saves those households about $120 a month from what they had been paying since the peak in June.