As summer travel season starts to heat up, drivers are in for a pleasant surprise: gas prices are at their lowest point since 2021.
Crude oil prices have dropped nearly 25% since January, which is uncommon as the summer fuel blend usually comes with higher costs and increased demand during the peak travel season.
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Currently, supply is surpassing demand due to increased production both in the U.S. and abroad. OPEC+, an alliance of oil-producing countries that controls nearly 80% of the world’s oil reserves, significantly influences global gas prices. The U.S. also holds the title of the world's top crude oil producer, a title it has maintained since 2018.
On the demand side, tariffs and economic uncertainty have caused consumers, businesses, and countries to proceed with caution.
"I definitely am happier seeing it's going down more, definitely," one driver told the Scripps News Group. "But I would still, I would hope that it's going to go down more."
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When the economy is thriving, people tend to travel and spend more, leading to higher oil demand. However, when economic activity slows, oil demand decreases.
Other contributing factors include improved vehicle standards leading to higher gas mileage and a growing presence of electric cars in some regions.
For producers, low oil prices can translate to reduced profits, but for consumers, it means a bit more cash in their pockets as they prepare for summer adventures.
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