Dropping oil prices raise hopes at gas pump

Oil prices turned lower, giving up overnight gains on Wednesday and raising hopes gas may follow.

A barrel of U.S. crude dropped 6.4% to settle at $96.44 on Tuesday. It had briefly topped $130 last week when worries about disruptions to supplies because of the war in Ukraine were at their height.

Meanwhile, at the gas pump, average prices have fallen from $4.33 a gallon to $4.32.

China’s recent Covid wave and subsequent lockdowns have helped oil prices ease from record highs reached roughly a week ago, according to analysts.

In the last few days, China has clamped down as it grapples with its worst Covid spike since the pandemic began, ordering lockdowns and a pause in manufacturing in some cities.

China is the world’s biggest oil importer and any reduction in demand would have an impact on energy prices.

Recent outbreaks have infected more than 15,000 people and stem primarily from the highly transmissible omicron variant, China’s National Health Commission said Tuesday.