Gas prices in the U.S. are dropping just before Thanksgiving, and with the OPEC Plus oil cartel in disarray, they could continue to decrease by Christmas.
The decrease in gas prices has helped reduce the inflation rate for most of the year. This week, they reached levels not seen at this time of year since 2021, according to the AAA motor club. The national average price for a gallon of regular gasoline on Wednesday was $3.28, about 27 cents less than a month ago.
The recent drop in gasoline prices is due to the weakening of oil prices, which have fallen by more than $15 a barrel, or nearly 20 percent, since early September. Diesel prices have also eased, which should help reduce food prices because diesel is the primary fuel for agriculture and heavy transport.
The drop in oil prices accelerated on Wednesday as reports emerged that the planned meeting of OPEC Plus had been postponed. Saudi Arabia had been expected to extend its cuts in production, but Nigeria and Angola are resisting, and lobbying for higher production quotas.
With the uncertainty surrounding the OPEC Plus meeting, there is potential for an agreement, especially if certain countries agree to voluntary cuts. However, this uncertainty has prompted traders to sell off crude.
AAA has predicted that more than 49 million Americans will drive to holiday destinations in the coming days, an increase of 1.7 percent from last year. Another 4.7 million will fly, a 6.6 percent increase from last year and the highest number since 2005, according to the motor club.
Airfares will be slightly more expensive than last year, but overall holiday travel should be cheaper. The average price for a domestic hotel stay is down 12 percent from last year, while rental car costs are 20 percent lower.
