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

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