The U.S. has been the world's biggest producer of oil since 2018
Americans are seeing better prices at the pump and oil production is expected to soon reach new heights.
Gasoline prices fell 4.1% in Septemberfrom the previous month, marking the fifth straightmonthly decline since April when prices likely peaked in 2024,according to the latest Consumer Price Index released Thursday, the government's bellweather measure of inflation.
The average weekly price of regular gasoline declinedto around $3.03 at the pump as of Oct. 7, which is the lowest price sinceFebruary and a nearly 14% decrease from around a year ago,according to the U.S. Energy Information Administration.
Broader fuel oils, including disel, marine fuels and more, also fell 6% in September from the previous month, according to the CPI.
Why are gasoline prices falling in 2024?
This year's earlierdecline in gas prices is in part because of weaker-than-usualdemand during 2024'ssummer season, ABC News reports, andenergy experts say pricescould fall below $3 a gallon in 2024, which would be the first time since March 2021.
Meanwhile, oil production is heating up and could keep prices low in 2025.
U.S. crude oil production is projected to reach a reach a record-high average of 13.5 million barrels a day in 2025, the EIA said.
The U.S. has been the world's top producer of crude oil since 2018and accounted for nearly 13% of the world's production in 2023, according to the EIA.
The agency recently revised down its projected price for crude oil to $78 a barrel from $85in 2025 largely due to lower global demand growth.
Still, the EIA said uncertainty around conflicts in the Middle East could raise gasoline prices at the pump.
"Although we reduced our crude oil price forecast, crude oil prices have risen in recent days because of escalating conflict in the Middle East, raising the possibility of oil supply disruptions and further crude oil price increases," the EIA said.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-10-11 00:12:58
