National Gas Prices Sink Below $3/Gallon For First Time Since 2021

Core Insights - The national average price of gasoline has dropped below $3 per gallon, reaching its lowest level since 2021, with a median price of $2.83 per gallon, which is 6.9 cents lower than a month ago and 5.4 cents lower than a year ago [1][3] - Diesel prices have also declined, with the national average currently at $3.72 per gallon, down 5.5 cents from the previous week [2] - Oil prices remain low, with Brent crude trading at $63.07 per barrel and WTI crude at $59.19 per barrel, both showing a decrease from a month ago [4] Gasoline and Diesel Prices - Nearly every state experienced a decrease in average gas prices leading into Thanksgiving, with the national average falling to $2.95 per gallon over the weekend [3] - Some gas stations are offering prices below $2 per gallon, indicating significant regional variations in pricing [2] Oil Inventory and Market Trends - U.S. oil inventories increased by 2.8 million barrels but remain 4% below the seasonal average, while gasoline inventories rose by 2.5 million barrels, also 3% below the five-year seasonal average [5] - Distillate inventories increased by 1.1 million barrels but are still 5% below the five-year seasonal average [5] Energy Price Forecasts - U.S. energy prices are projected to rise, with residential electricity prices increasing by 5.8% from August 2024 to August 2025, and further moderate increases expected in 2025 and 2026 [6]