Oil Prices Down As Global Slowdown Cuts Demand

Prices at the pump continue to sink, providing relief to inflation-weary consumers and an economy mired in a slowdown.

Photo Insert: Gas prices have tumbled by 86 cents since hitting a record average high of $5.02 on June 14.

The national average for regular gasoline dropped three cents to $4.16 a gallon on Wednesday, according to the American Automotive Association (AAA), the 50th consecutive day of falling prices, Matt Egan reported for CNN Business.

Gas prices have tumbled by 86 cents since hitting a record average high of $5.02 on June 14. Over the past month alone the national average is down by 65 cents. Nineteen states have average gas prices below $4, including Ohio, Iowa, and Wisconsin, according to AAA.

The steady decline in gas prices has been driven by multiple factors, including recession fears that have knocked down oil prices and the fact that some Americans cut back on driving when gas prices spiked above $5 a gallon.

Oil prices fell sharply on Wednesday, finishing at levels unseen since Russia invaded Ukraine.

The losses were sparked by a new report that revealed an unexpected build in stockpiles of crude and gasoline inventories, raising questions about energy demand. US crude tumbled 4% to $90.66 a barrel -- the lowest close since February 10, two weeks before Russia launched its war in Ukraine. Brent crude, the world benchmark, lost more than 3%.

Concerns about a global economic slowdown have driven oil prices lower in recent days and weeks.

Since closing at $123.70 a barrel on March 8, US oil is down by about 27%. Oil prices turned lower on Wednesday after the US Energy Information Administration said weekly oil inventories jumped by 4.5 million barrels last week, compared with expectations for a decline.

Gasoline stockpiles also increased slightly. The oil market initially rallied on Wednesday after OPEC+ announced an agreement to just slightly increase production beginning in September. That amounts to the smallest output increase on a percentage basis in OPEC history, according to Rapidan Energy Group.

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