By Tom Latek
Kentucky Today
The average price of gasoline nationwide fell 9.3 cents over the last week and stands at $3.99 per gallon, according to GasBuddy data compiled across the U.S.
In Kentucky, the statewide average for regular gas stood at $3.63 per gallon, as of mid-day on Wednesday.
“Average gasoline prices fell in 47 states over the last week, with the national average dropping below $4 per gallon late Sunday for the first time since mid-April,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “The decline came as oil prices moved sharply lower in reaction to news of a potential deal between the United States and Iran, though it remains to be seen whether the agreement will hold. A handful of price-cycling states saw averages jump before joining the broader downward trend.”
Looking ahead, De Haan noted, “The real test now shifts to the Strait of Hormuz, where any reopening and resumption of normal oil flows would be the clearest signal that this relief is durable. For now, the national average could continue falling, provided there isn’t a drastic reversal and the U.S. and Iran continue moving in a positive direction.”
Oil prices plunged after the U.S. and Iran announced a framework deal Sunday evening to end the war and reopen the Strait of Hormuz, the critical waterway that has been the epicenter of global energy market disruption since February. The agreement represents the most significant de-escalation since the conflict began, and markets moved quickly to price out much of the geopolitical risk premium that had been built into crude over the past several months.
Even with the drop in crude oil prices, relief at the pump won’t arrive overnight, as analysts caution it could take months for shipping and refining to normalize. Crude remains more than 20 percent higher than when the conflict with Iran began, and is over 40 percent higher than at the start of the year.
You can check out gas prices near you by going to Kentuckygasprices.com.