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Motorists were offered a glimmer of hope today as gas prices fell to $3.74 a gallon – as experts say they could drop even further before Halloween.

Figures from the AAA show that the price of a gallon had dropped by nine cents in the last week and were 13 cents lower of the 2023 peak set in September. 

But analysts predict prices are set to drop even faster after the cost of US oil plunged by 5.6 percent to $84.22 a barrel on Wednesday. It marked the biggest one-day drop in a year. 

It fell even further on Thursday, sinking to a five-week low of $82.24 a barrel. The figures defied predictions made by Wall Street banks last week that US crude could shoot up to $100 following aggressive supply cuts from Saudia Arabia and Russia.

Andy Lipow, president of the consulting firm Lipow Oil Associates told CNN that prices could tumble to nearly $3.50 a gallon nationally over the next few weeks.

Motorists were offered a glimmer of hope today as gas prices fell to $3.74 a gallon 

Meanwhile Tom Kloza, an energy analyst for the Oil Price Information Service, told the outlet prices could fall as low as $3.25 a gallon by Halloween. 

He estimated retail prices would drop by between 1.5 cents and 2.5 cents a gallon over the next few days. 

‘People at cocktail parties will finally be talking about gas prices in a good way,” Kloza said.

‘No doubt, it’s welcome news for the consumer portion of the economy.’

He added: ‘Gas price disinflation is probably going to be the story for the rest of the year.’

It comes after gas prices soared to their highest seasonal level in a decade in September, with the cost of a gallon topping $3.8 per gallon amid concerns about supply disruptions from the Middle East. 

Experts say they could drop even further before Halloween. Pictured: the states with the highest and lowest gas prices as of today 

The seasonal high this year were significant because it struck at a time when gas prices generally decline as summer gives way to fall and people drive less. In addition, it comes on the heels of a surprisingly cheap summer despite travel seen on the Fourth of July – which historically pushes prices up.

An extension to production cuts by major producers Saudi Arabia and Russia on Tuesday further ensnared an already tightened global supply, and seemed to have an almost instant affect.

The decision was billed by both Riyadh and Moscow as a so-called ‘precaution’ to ensure oil market stability, trimmed 1.3million barrels out of the global market this week, with the US’s abnormally high energy prices coming as a result. 

The issue has been compounded by the fact US officials are still trying to make up for the more than one million barrels a day of fuel making lost during the pandemic. 

Content source – www.soundhealthandlastingwealth.com

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