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Gasoline Prices Jump as Supply Uncertainties Mount

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The three-month streak of falling gas prices may be coming to an end after 14 consecutive weeks, as uncertainties regarding crude oil supplies begin to mount.
After declining for 99 days, the national gas average rose slightly, to $3.68 a gallon, on Sept. 21, according to AAA, a sign that fuel costs may begin to rise again.
The sharp decline, after fuel costs peaked above $5 a gallon in June, has recently helped temper overall inflation, making things easier for the Federal Reserve.
Inflation has been an overall challenge for the Fed, which on Sept. 21 announced another large interest rate hike after its policy meeting.
However, some analysts believe that the streak of lower gas prices ended earlier.
“It actually ended some ~40 days ago, according to the most robust dataset on gas prices,” wrote Patrick De Haan, head of petroleum analysts at GasBuddy, in a tweet.
Current average gas prices are down from $3.90 a gallon a month ago, but up from $3.19 at the same time last year.
Most of the drivers outside of California are currently using less-expensive winter blend gasoline, so modest pump price reductions have occurred.
The 99-day decline only partly reversed a run of skyrocketing gas prices, which accelerated after Russia’s invasion of Ukraine in February shook the energy markets worldwide.
“All streaks have to end at some point, and the national average for a gallon of gas has fallen $1.34 since its peak in mid-June,” said Andrew Gross, the AAA spokesperson.

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