Americans Get a Break at the Gas Pump as Omicron Roils Oil Markets

(Bloomberg) -- Americans are feeling some relief as the impact of a recent drop in oil prices trickles down to gasoline stations. 

The average retail price has dropped more than 2% nationwide since touching a 7-year-high a month ago and now goes for $3.34 a gallon, according to AAA data. The drop came in the wake of an even more dramatic slump in crude oil amid concern the omicron variant would trigger another round of demand-killing lockdowns. 

Gasoline could slip below $3.30, said Patrick DeHaan, head of petroleum analysis at GasBuddy. High fuel prices have dogged U.S. President Joe Biden for most of the past year, prompting administration officials to plead for production increases from OPEC and domestic shale drillers. 

Despite the recent price pullback, data shows little sign of a significant hit to oil consumption thus far. A significant resumption of the oil rally -- the international benchmark has risen almost 5% this month -- could reverse the trend and pull gasoline higher, DeHaan said. 

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