FILE IMAGE - Customers refuel at a Costco gas station in Concord, California, U.S., on June 22, 2022. Photographer: David Paul Morris/Bloomberg via Getty Images Oil prices have dropped this week, leading to an average gas price below $5, a welcome sight for U.S.
travelers getting ready to celebrate Independence Day weekend.According to AAA, the gas price has fallen for the second week to $4.89 per gallon, a 9-cent drop from less than a week ago.
However, gasoline is still up $1.80 compared to June 2021.HOW TO WATCH FOX WEATHER ON TVThe travel association says the reason for the drop in oil price to $107 per barrel, down from $110, is not due to weather or supply chain-related issues but because of less demand.According to AAA, fear of a global recession is leading to less demand at the pump. "Fear is not a good reason to move a market like the one for oil, but it is a powerful motivator," AAA spokesperson Andrew Gross said in a statement. "The cost of oil accounts for nearly $3 for every $4.89 at the gas pump.
Consumers should find more relief when fueling up if oil prices drop further."As gas prices continue to rise across the nation, people in Dallas are also finding that other energy prices are rising as well.Earlier this month, the cost of a barrel went surpassed $120, sending the average price of a gallon of gas to $5.01, an all-time high since the AAA began collecting gas pricing data in 2000.HOT WHEELS: HOW TO PREPARE YOUR CAR FOR SUMMER TRAVELHow much you'll be saving on a gas tankthis week depends on where you are filling up.