After All-Time Highs, Fuel Prices Are Falling

After All-Time Highs, Fuel Prices Are Falling.

NBC News reports oil prices have started to tumble as a result of fears of a global economic slowdown.

Per data from AAA, after fuel prices hit all-time highs the week of June 13, they have now fallen to around $4.75 per gallon.

On July 8, Brent crude oil prices had fallen to around $104 a barrel.

Down from $115 per barrel recorded the week before, short of a high of $140 a barrel reached in March.

Hoping to curb inflation, the world's central banks and the U.S. Federal Reserve have started raising interest rates.

Officials reportedly believe increased rates will help soften demand, though experts say avoiding recession could be tricky.

All this talk of [higher] interest rates and recession — that's fear, the oil market is reacting on fear.

, Andrew Gross, AAA.com spokesperson, via NPR.

It's kind of like the stock market: You have these incredible swings, when it sees rising rates or talk of recession... , Andrew Gross, AAA.com spokesperson, via NPR.

... a global recession, that means an economic slowdown, which means less oil is being consumed.

, Andrew Gross, AAA.com spokesperson, via NPR.

That's bad news for the oil industry.

And that’s why prices have been dropping.

, Andrew Gross, AAA.com spokesperson, via NPR