The average price of regular gasoline in the United States has fallen to $4.17 per gallon, or about 3.78 liters, ahead of the midterm elections. Data from the American Automobile Association show a decline of 12 cents from the previous week and 23 cents from a month earlier. Nevertheless, fuel remains significantly more expensive than a year ago, when the average price was $3.04 per gallon.
The price on February 28, when the United States and Israel first launched strikes on Iran, was $2.98 per gallon. Diesel is also becoming cheaper but remains at a high level of $6.29 per gallon. That is a decline of 6 cents in a week. The price of diesel crossed the $6 threshold in September before reaching a peak of $6.53.
The oil price drop has boosted expectations of cheaper fuel
Oil prices fell by 6 percent on Monday amid diplomatic efforts to end the war between the United States and Israel and Iran. Live talks were held in Qatar over the weekend, and markets reacted to signals that US President Donald Trump prefers negotiations to new attacks on Iran.
“Oil markets fell significantly this morning after Trump signaled that he prefers negotiations rather than new attacks on Iran,” said Patrick De Haan, head of fuel analysis at GasBuddy. According to him, the price of oil fell by about 5 percent, while wholesale gasoline and diesel prices point to a further decline of approximately 16 cents per gallon. De Haan believes that the average price of gasoline in the country could fall below $4 next week if there is no change in the course of the conflict.
Fuel remains a political issue
The cost of living is among the main issues for voters ahead of the midterm elections. An AP-NORC poll shows that the majority of Americans consider tackling rising prices a priority for Congress. That is the view of 78 percent of Republicans and 89 percent of Democrats.
White House spokesperson Taylor Rogers told Al Jazeera that gasoline prices would fall sharply after the conflict ends. She defended the actions of the Trump administration and said that, thanks to the US military, more oil is now leaving the Persian Gulf than before the conflict began.
The average price of gasoline during Trump's second term is expected to exceed $3.46 per gallon. According to an analysis by the Financial Times based on federal data, this would surpass the previous record for a presidential term, recorded under former President Joe Biden.
The drop in oil prices also affected the shares of major US energy companies. In midday trading, ConocoPhillips lost 3.7 percent, Chevron fell 2.3 percent, and ExxonMobil dropped 3.3 percent. At the same time, the main stock indexes were in positive territory: the Nasdaq rose 0.7 percent, the S&P 500 added 0.6 percent, and the Dow Jones gained 1 percent.
Sources: aljazeera.com