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Gas prices in New Jersey are seeing a decline just in time for the Fourth of July weekend, with the average price per gallon at $3.16 as of Tuesday (July 1). This decrease comes as tensions in the Middle East, particularly between Iran and Israel, have begun to ease. Analysts predict that gas prices could reach their lowest levels for a Fourth of July weekend since 2021.
According to NorthJersey.com, the cooling tensions have resulted in a drop in oil prices, with West Texas Intermediate (WTI) crude oil trading at just over $65 a barrel, down from $73 a barrel on June 17. The recent U.S. strikes on Iranian nuclear sites initially caused oil prices to spike, but the impact was short-lived as fears of a prolonged conflict subsided.
Despite the recent decrease, Patrick De Haan, head of petroleum analysis at GasBuddy.com, warns that factors such as hurricane season or renewed tensions in the Middle East could still affect prices. The Energy Information Administration notes that the Strait of Hormuz, a critical oil passageway, remains a potential flashpoint that could disrupt global oil supplies.
Meanwhile, the U.S. administration's efforts to create a more production-friendly environment are expected to contribute to stable gas prices. As Fox Business reports, these measures include favorable regulations and accelerated refinery permitting, which could lead to long-term savings for consumers.
As the holiday weekend approaches, drivers in New Jersey and across the nation can enjoy the respite from high gas prices, although the situation remains fluid with potential risks on the horizon.