Gasoline prices fall to $3 per gallon to hit lowest level since 2021

Core Insights - Gasoline prices have fallen to an average of $3 per gallon, the lowest level since 2021, with over 30 states reporting prices below this threshold due to lower crude prices and cheaper winter blends [1][2] - OPEC and its allies have increased oil production, contributing to a year-to-date decline of 14% in Brent futures and 16% in West Texas Intermediate futures [2][3] - Analysts predict continued downward pressure on gas prices, with some stations in the Midwest already reporting prices below $2 per gallon [2] Group 1: Price Trends - Gasoline prices are currently averaging $3 per gallon, with significant drops observed in multiple states [1] - The increase in OPEC supply has led to a forecasted decline in Brent prices to $58 per barrel by 2026, with West Texas Intermediate expected to trade $4 lower [3][4] - Predictions indicate further price reductions, with an anticipated drop of $1 per barrel in 2027 [4] Group 2: Market Dynamics - The combination of completed refinery maintenance and increased OPEC output has created a favorable environment for lower gas prices [1][2] - Analysts from Citi suggest that OPEC's supply increases align with political ambitions to lower gasoline prices ahead of mid-term elections [3] - JPMorgan's commodities team emphasizes that while demand remains strong, supply is currently too abundant, leading to sustained price pressure [4]