The Wall Street Journal article is behind a paywall but the opening sentence is: “Good news for Americans hitting the road over what could be a record Memorial Day weekend of driving: Prices at the pump are ticking lower again.”
The New York Times reports that the drop in gas prices is largely “because forecasters believe that global demand for oil will be weaker this year than previously expected.” Also, “traders’ fears that the war in Gaza would lead to a big disruption in supply of oil from the Middle East have eased.”
But the Biden administration played a part, too, by timing the sale of gasoline from a Northeast reserve to the start of the summer driving season. As AP explained, Congress mandated the closure of the reserve and the sale of its gasoline. The Biden administration is maximizing the price-easing effect with its timing:
The sale, from storage sites in New Jersey and Maine, will be allocated in increments of 100,000 barrels at a time. The approach will create a competitive bidding process that ensures gasoline can flow into local retailers ahead of the July 4 holiday and sold at competitive prices, the Energy Department said.
In an email, a spokesperson for the Biden-Harris 2024 campaign said, “Gas prices are falling. At the Biden campaign, we wish everyone safe travels and a restful Memorial Day weekend.”
Enjoy the price drop everyone, and please be safe on and off the road.
