Gasoline Prices Drop Toward Pandemic-Era Lows

Core Insights - The national average price of gasoline has dropped below $3 per gallon, with current prices at $2.969, which is 16 cents lower than a year ago [1] - GasBuddy predicts that prices may continue to decline, potentially allowing motorists to enjoy sub-$3 prices for an extended period [1][2] Price Variations - There is significant variation in gas prices across states, with California averaging $4.624 per gallon, while Oklahoma's average is $2.557 per gallon [1] - The median U.S. gas price stands at $2.82 per gallon [1] Market Dynamics - The drop in gasoline prices is primarily driven by increased oil production from OPEC, which has rebalanced the global oil market [2] - Weaker demand and easing inflation have also contributed to the favorable pricing environment [2] Oil Price Outlook - Current Brent crude prices are at $61.31 per barrel, significantly lower than the year's peak of approximately $81 per barrel [2] - WTI crude is trading at $58.06 per barrel, down from a January peak of $78.71 per barrel [2] - Wall Street sentiment regarding long-term oil prices is mixed, with concerns about oversupply due to OPEC+ production cuts being unwound and increased output from non-OPEC+ countries [2] Future Projections - Goldman Sachs forecasts that oil markets could be oversupplied by 1.9 million barrels per day in 2026, leading to further price declines [2] - Predictions indicate that oil prices may fall into the $50s per barrel next year, compounding the current year's decline [2]