Explainer: Why gas prices are falling

Explainer: Why gas prices are falling

A customer pumps gas at an Exxon gas station, Tuesday, May 10, 2022, in Miami. Gasoline prices are sliding back toward the $4 mark for the first time in more than five months — good news for consumers who are struggling with high prices for many other essentials. (AP Photo/Marta Lavandier)

(AP) – Gas prices hit record highs just two months ago, but now they’re sinking below $4 a gallon. The auto club and insurer AAA said Thursday that the nationwide average price was $3.99 a gallon. There are several factors behind the dramatic drop, and the biggest is a sharp pullback in oil prices. The price of benchmark U.S. crude is down about one-fourth from its peak. Investors bidding down the price of oil are worried that the global economy is shaky, and that demand for energy will get weaker.

Photo: (AP Photo/Marta Lavandier)