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

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Gasoline prices fell to an mean of $3 per gallon this week to deed their lowest level since 2021.

As of Monday, astatine slightest 30 states saw an mean of little than $3 astatine the pump, according to AAA data, arsenic little crude prices and little costly wintertime blends springiness alleviation to drivers heading into the December vacation season.

“With refinery attraction mostly implicit and OPEC expanding lipid accumulation for December, lipid prices person struggled," GasBuddy's Patrick De Haan said connected Monday.

"Combine those factors and you person a coagulated look for continued downward unit connected state prices successful the weeks ahead."

De Haan noted a fistful of stations successful the Midwest person adjacent seen prices gaffe beneath $2 per gallon, with that fig expected turn arsenic the Christmas vacation play approaches.

NY Mercantile - Delayed Quote USD

As of 6:10:02 AM EST. Market Open.

RB=F BZ=F CL=F

The Organization of Petroleum Exporting Countries and its allies person accrued output this year, sending Brent (BZ=F) and West Texas Intermediate (CL=F) futures down 14% and 16% twelvemonth to date, respectively.

"OPEC proviso increases successful 2025 look aligned with the Trump Administration’s ambitions to little gasoline prices up of the mid-terms," analysts from Citi said successful a enactment connected Monday.

OPEC precocious announced it volition instrumentality with plans to intermission output hikes successful aboriginal 2026 arsenic prices person travel nether pressure.

JPMorgan's commodities squad led by Natasha Kaneva precocious forecast that Brent volition autumn to $58 per tube successful 2026, with West Texas Intermediate trading $4 beneath this level.

In 2027, the steadfast sees prices falling by different $1 per barrel.

"At the hazard of flogging a precise dormant horse, our connection to the marketplace has remained accordant since June 2023," JPMorgan strategists wrote. "While request is robust, proviso is simply excessively abundant."