OIL PRICES PLUMMET TO NEW 2023 LOWS; GAS PRICES FACE DOWNWARD PRESSURE

CHICAGO, Ill., (March 20, 2023) — Illinois gas prices hovered around $3.65 last week with today’s gas price being $3.63 per gallon. That is 88 cents less than a year ago at $4.51 per gallon and gas prices may continue to drop. Visit gasprices.AAA.com to view daily average gas prices. 

"There were significant losses in the oil market last week which should enable gas prices to move lower," said Molly Hart, spokeswoman for AAA - The Auto Club Group. "The failure of two U.S. banks raised concerns of a global recession that could eventually hamper fuel demand."

The U.S. price of oil dropped 13% last week, for a total loss of 17% over two weeks. Friday’s settlement of $66.74 per barrel was the lowest since December 2021. Interestingly, the gasoline market did not take quite as big of a hit, likely because strong springtime demand coupled with refinery maintenance season and the switch to summer gasoline is serving as somewhat of a buoy. Regardless, gasoline futures dropped 24 cents through the past two weeks, which is an indicator that pump prices should move lower, unless fundamentals rebound this week.

Drivers can find current gas prices using AAA.com/FuelFinder which allows consumers to compare gas prices at retailers by city or zip code.