Gasoline Drops Below $3 in Half the U.S

Core Insights - Average gasoline prices in the U.S. are below $3 per gallon in half of the states this Thanksgiving, with further declines expected as Christmas approaches [1][3] - The national average price of gasoline is $3.055 per gallon as of November 25, nearly unchanged from $3.056 a year ago, due to lower crude oil prices and seasonal demand factors [2][5] - A record 81.8 million people are expected to travel at least 50 miles from home during the Thanksgiving holiday, with 73 million projected to travel by car, indicating a 1.3 million increase in road travelers compared to last year [4] Price Dynamics - The drop in gasoline prices is attributed to lower crude oil prices, cheaper winter blends, and reduced seasonal demand despite increased travel during Thanksgiving [2][5] - The price of crude oil has decreased by approximately 17% year-to-date, with WTI Crude futures falling below $60 per barrel recently [5][6] - Oklahoma currently has the lowest average gasoline price at $2.43 per gallon, the lowest since February 2021 [7] Market Outlook - Gasoline prices are expected to continue declining due to low consumption and anticipated lower oil prices amid global oversupply and ongoing peace talks regarding the Ukraine conflict [6] - The overall low demand for gasoline during this time of year is helping to maintain lower pump prices, despite the expected surge in demand during the Thanksgiving week [5]