Gas prices hit lowest level since January as oil slides below $60

Core Insights - Gasoline prices in the United States are approaching the $3 per gallon mark, driven by falling oil prices, reduced demand, and the introduction of cheaper fuel blends for the winter season [1][4] - The average price of gasoline has decreased to $3.06 per gallon, which is $0.05 lower than the previous week and $0.14 lower than the same time last year, marking the lowest level since January [1][2] - Analysts predict that the national average could drop below $3 per gallon for the first time in years, with some regions potentially seeing prices below $2 per gallon in the coming weeks [2][3] Price Trends - Western states like Oregon, Washington, and California are experiencing prices above $4 per gallon due to higher taxes and fees, while over twenty states in the Midwest and Gulf Coast are seeing averages well below $3 per gallon [3] - The decline in gasoline prices is attributed to waning demand and a shift to cheaper fuel blends by refineries as the winter driving season approaches [4] Market Dynamics - West Texas Intermediate crude oil prices have recently fallen below $60 per barrel, influenced by renewed tariff threats from President Trump against China, which has raised concerns about demand [4] - Additional supply from OPEC+ and progress on Middle East peace negotiations have raised concerns about oversupply in the market [5] Future Projections - The Energy Information Administration forecasts that gasoline prices will average $3.10 per gallon this year, a decrease of $0.20 from last year, with further declines expected to an average of $2.90 per gallon by 2026 [6] - Analysts from Citi highlight that weak gasoline demand is expected to persist into 2026 and 2027, driven by improvements in vehicle efficiency and the growing electric vehicle fleet, particularly in the US and China [5]