Gas prices are falling across the country and in the Hudson Valley, but the big question is whether it will continue.
As of Thursday, gas prices were below $4 across the country, averaging $3.97.
Unfortunately, according to AAA, the average is $4.37 in New York and $4.48 in Westchester.
We’re seeing a decline in the region, but don’t get too excited just yet.
Energy experts warn that prices remain volatile and that there are several factors that will help determine what happens next.
Demand for oil is huge. Gasoline prices have fallen, while food and electricity prices continue to rise, putting a strain on household budgets. So people are still careful where they spend their money, including driving as little as possible.
Supply is another part of the equation. The US has released large amounts of oil from its emergency reserves, but it has only gone so far. Moreover, his OPEC of the oil cartel has largely rejected President Joe Biden’s demand for increased production.
However, domestic oil producers have taken advantage of higher oil prices by increasing production.
And as the country enters hurricane season, there’s weather to consider. “If another Katrina- or Rita-type hurricane hits the Gulf Coast, it could lead to unprecedented prices, with refinery, exploration and pipeline closures in the oil-infrastructure-rich Gulf Coast.” says AAA’s Robert Sinclair.