LITTLE ROCK, Ark – After several heady days, gas prices have begun dropping in Arkansas, and the nation, after crude oil prices began dropping in the past week.
The gas price average in Arkansas is $4.53 for June 17, down from yesterday’s $4.54. That marks a fall from what had been a steady climb in the past week, where gas prices started at $4.51 per gallon to the $4.54 peak.
The difference? Just over a week ago, on June 8, a barrel of crude oil, West Texas Intermediate Crude as an example, was $122.11. That is as high as oil had gotten since March 8, $123.70, when sanctions targeting Russian oil imports were implemented by the Biden administration. Gasoline then was in the $4.21 per gallon range.
Prices at the pump fell for a short time after that March 8 peak, but then came the plans for additional Russian oil sanctions by the European Union in April, and the price of crude began climbing again, as did fuel prices.
Since then summer, with its higher demand for gas, has come and in keeping with the tradition gas prices climbed as demand climbed.
Then China began the steps of ending its coronavirus lock-down and the expected increased activities drove crude prices higher in April, through May and into June and the June 8 peak of $122.
Since then came the word “recession” and a growing public outcry about oil company profits, coupled with the Fed’s increase interest rate hike June 15, and crude prices have dropped, now at $110 for June 17.
(Gasoline producers, in response to the profits accusations, pointed out that refinery capacity has also dropped against increasing post-pandemic demand.)
Since June 15, West Texas crude prices began dropping, as have prices at the pump.