Why U.S. gas prices are falling from historic highs
STORY: Source: American Automobile Association
The average price of gas in the U.S. has dropped to $4.631 from a record $5.014 a month ago
Source: American Automobile Association
It's still $1.485 higher than a year ago, but prices are on a trajectory to keep falling the next few weeks
That's due to slowing global demand and a strong U.S. dollar, which pushes up prices elsewhere
Source: Energy Information Administration
Another factor is the demand for gas, jet fuel and diesel, which is down 10% in the U.S. compared to 2019
Gas stations have responded by lowering prices
The cost of gas has also followed a drop in the futures market for both crude oil and gasoline
Those are down because investors worry interest-rate hikes could slow the economy
Retail prices should continue to slide, with the Midwest seeing some of the sharpest drops so far
But the futures market is highly volatile and supply remains tight, leaving room for uncertainty