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Drivers in Central New York are experiencing some relief at the gas pump as prices continue to drop. According to AAA, the average cost of a gallon of gas in the area is currently $3.12, which is a decrease of two cents from the previous week. However, this price is still eight cents higher than it was a month ago. The state average in New York is slightly higher at $3.17, while the national average stands at $3.15.
The drop in prices is attributed to an increase in oil supply. According to ABC News, the U.S. West Texas Intermediate futures price, a key measure of U.S. oil prices, has decreased by more than 17% since its peak in January. This decline is partly due to predictions of a slowdown in global economic growth, which has reduced demand for oil. Additionally, OPEC+ has increased oil production, further boosting supply.
Despite record travel over the Fourth of July holiday, gas prices have remained lower, providing relief to the 61.6 million road trippers who traveled during the holiday weekend. CNY Central reported that oil prices have stabilized between $66 and $68 per barrel, contributing to the decrease in gas prices.
Analysts suggest that gas prices may remain at current levels or potentially drop further as summer progresses, provided there are no major geopolitical conflicts or disruptions in oil supply. AAA's data shows that twenty states currently have average gas prices below $3 per gallon, with Mississippi offering the lowest at $2.71.