US wholesale gas prices drop to lowest point since before Russia's invasion of Ukraine, but prices at the pump remain 21% higher than last year

• US wholesale gasoline prices dropped to $2.41 Thursday, dipping further below the level it was at before Russia invaded Ukraine.
• Since peaking at $4.31 a gallon in June, US gasoline futures have tumbled more than 40%.

US wholesale gasoline prices continued to dip below levels that predate Russia's invasion of Ukraine in late February, as fears of an economic slowdown hit the energy sector.

On Wednesday, US gasoline futures fell to $2.5899 a gallon, marking the lowest price since February 18. On Thursday, they dropped to $2.4094.

Since peaking at $4.31 a gallon in June, US gasoline futures have tumbled more than 40%, though they are about 11% above year-ago levels.

Meanwhile, retail gasoline prices at the pump have fallen more than 20% from their June highs and are 21% higher than last year.

The average gallon of gas in the US costs $3.829, compared to $3.174 last September, according to AAA data.

The declines in wholesale and retail gasoline prices come after separate data show smaller-than-expected drawdown in inventories.

Energy Department data showed Wednesday that gasoline stockpiles in the US shrank by 1.172 million barrels last week, less than expectations for a draw of 1.178 million barrels amid increases in production.

Now, traders are looking ahead to the September 5 OPEC+ meeting where member states will convene to discuss potential changes to oil output, which could have an impact on prices at the pump and futures.