Gasoline prices in the United States are below $4 a gallon for the first time in almost four months. According to AAA, the national average for a gallon of gasoline was $3.98 on Tuesday, up from $4.56 a gallon earlier this year. Patrick De Haan, an oil expert at tracking company GasBuddy, predicts that fuel prices will continue to decline over the Thanksgiving holiday. Diesel costs have also fallen, and the national average is now $6.16 a gallon, down from $6.53 at the end of September. Federal rules require gas stations to sell a summer mixture, designed to protect against evaporation, from June 1 to September 15. Outside of that period, stations may use a winter mix, which is cheaper to produce, which explains why prices often drop in the fall. The shift to the winter mix coincides with a drop in demand as people take fewer road trips and vacations during the winter months. According to AAA, gas prices drop between 10 and 30 cents per gallon during the winter months for that reason. Global oil costs, the main factor determining prices at the pump, have also fallen amid hopes that the midterm elections could open the door to a deal between the United States and Iran to end the war. On Tuesday, Brent crude, the international benchmark, was trading at around $91 per barrel. In an interview with CBS News “60 Minutes” on Sunday, President Trump said he is “not looking” to escalate the war in Iran. “I don’t think there’s any reason to do it,” he told “60 Minutes” correspondent Ross Douthat. However, the timeline for reaching a resolution remains unclear. Gregory Brew, senior analyst for Iran and energy at political risk consultancy Eurasia Group, said Monday that the prospect of a deal remains “unlikely.” “Despite ongoing mediation, neither the United States nor Iran has changed their negotiating position,” he said in a research note on Monday. While gas prices have fallen, analysts say the high cost of fuel caused by the war has spread to other categories, keeping inflation high. October CPI data, released on Tuesday, shows food prices rose at a 0.5% monthly pace in October after remaining flat in September. Edited by Alain Sherter More from CBS News Go deeper with The Free Press In:
