Jamie Spencer
For the first time in over three and a half years, the national average price of gasoline in the United States has dipped below $3 per gallon. According to data from GasBuddy, compiled from over 12 million individual price reports across more than 150,000 gas stations nationwide, the average price was $2.97 per gallon on Monday, a level last seen in 2021.
GasBuddy’s petroleum analysis head, Patrick De Haan, highlighted that 35 U.S. states now enjoy average gas prices under $3 per gallon, up from 28 states a month ago.
“The national average has finally fallen below $3 per gallon, and it couldn’t come at a better time for motorists with the holidays upon us,” De Haan said. “One would need to count over 1,300 days since we’ve seen the national average this low, with the affordability of gasoline at its lowest non-COVID level since 2015.”
Oil Prices and Gasoline Trends
Oil prices remain the primary factor influencing gasoline costs in the U.S. Commodity experts from Standard Chartered predict U.S. crude oil production will not experience significant growth under President-elect Donald Trump’s administration.
- Production Stats:
- U.S. crude output has risen by 4.7 million barrels per day (mb/d) since its pandemic low in May 2020.
- However, production is only 0.4 mb/d above pre-pandemic levels, reflecting an annual growth rate of 80,000 barrels per day.
Looking ahead, Standard Chartered forecasts:
- A slower growth rate of 630 kb/d in 2024.
- An even steeper slowdown to 300 kb/d in 2025.
Market Hesitation Amid Political Transition
Oil markets have struggled to find clear direction following Trump’s election victory, even as geopolitical risks remain high, particularly in the Middle East.
Standard Chartered analysts suggest that markets are adopting a “wait-and-see” approach until Trump officially assumes office. This hesitancy underscores a broader uncertainty about potential shifts in energy policy and its impact on global oil dynamics.
