The national average price of gasoline in the United States fell to $3.03 per gallon on Monday, marking the lowest level since May 2021. This price is down 16.7 cents from a month ago and 32.3 cents compared to the same time last year. Diesel prices have also seen a decline, with the national average now at $3.52 per gallon, down from $4.37 a year ago.
Patrick De Haan, head of petroleum analysis at GasBuddy, explained that while the election season is over, gas prices have continued to drop. The national average has now fallen for the fourth consecutive week due to lower seasonal demand and cooler temperatures across much of the country.
De Haan pointed out that 28 U.S. states now have gas prices below $3 per gallon, a trend GasBuddy predicted in its annual Fuel Outlook published last December. “With the median U.S. gas price now at $2.95 per gallon, the lowest since 2021, it seems likely that the national average will soon fall below $3 per gallon for the first time in over two years,” he said. Diesel prices have already dropped below that threshold, which De Haan believes will bring relief to drivers as the holiday season approaches.
Oil prices are the main driver of gasoline prices in the U.S. According to commodity experts at Standard Chartered, U.S. oil production has reached new highs, but growth has slowed. In August 2024, U.S. crude output hit a record 13.40 million barrels per day, surpassing the previous record of 13.31 million barrels per day set in December 2023.
Since the pandemic’s low in May 2020, U.S. crude production has increased by 4.7 million barrels per day. However, it’s only 0.4 million barrels per day higher than pre-pandemic levels in November 2019, representing a modest annual growth rate of just 80,000 barrels per day over that period. Experts forecast that growth in U.S. oil production will continue to slow in the coming years, with 2024 production expected to grow by just 630,000 barrels per day, followed by a further slowdown to 300,000 barrels per day in 2025.
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