U.S. gas prices fall below $4 for first time since July

Key Points:

• The national average price of regular gasoline in the U.S. fell below $4 per gallon for the first time since July, reaching $3.9788, marking a decline of about 17 cents from the previous week and nearly 39 cents from a month ago.
• Energy inflation slowed significantly in October, with energy prices rising only 0.7% compared to a 5.2% surge in September, and gasoline prices increasing 1% after a 9.1% jump the previous month.
• Seasonal trends and lower oil prices both contributed to the recent drop in gasoline prices, with Bespoke Investment Group noting that price declines at this time of year are typical.
• The decrease in gas prices followed a sharp decline in crude oil prices, with Brent crude briefly falling below $90 a barrel due to hopes of easing tensions between the U.S. and Iran and recovering oil flows from the Persian Gulf.
• Despite recent price drops, Federal Reserve Governor Christopher Waller cautioned that energy shocks could have more lasting inflationary effects than before the pandemic, depending on sustained price levels.