The national average price of regular gasoline fell to $3.99 a gallon on Thursday, according to AAA.
But prices at the pump fell 21% as drivers cut back on spending and fears of a recession threatened to dampen demand. Despite the decline, it is still 25% higher than last year.
“Despite gas prices continuing to fall at the height of the summer driving season, fewer drivers fueled up last week,” AAA said in a Monday press release.
“For now, this is another sign that Americans are changing their driving habits to cope with higher pump prices.”
U.S. crude oil prices also fell sharply from a peak of more than $120 a barrel in June to $92 a barrel on Thursday, helping ease a global supply crunch.
In a report released Thursday, the International Energy Agency revised its outlook for global oil supplies as Russia continues to pump more oil than expected.
“Russia’s exports of crude and oil products to Europe, the United States, Japan and Korea decreased by almost 2.2%. [million barrels per day] Since the start of the war, flows have shifted to India, China, Turkey and others, with seasonally higher Russian domestic demand mitigating upstream losses,” the Paris-based firm said.
In July, Russian oil production was only 310,000 barrels per day below pre-war levels, while total oil exports fell by only 580,000 barrels per day.
— Matt Egan contributed reporting.
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