The average U.S. gasoline prices are on track to fall below the $3-a-gallon level, just in time for Thanksgiving and the busy holiday travel season. According to the American Automobile Association (AAA), average U.S. gas prices stood at $3.071 per gallon on Monday compared to $3.191 a month ago and $3.320 a year ago. Gas prices are not at the lowest level since January, and just a few cents above its 2021 level. Prices are on track to fall further as West Texas Intermediate crude clings near its lowest level since September.
“While the election has come and gone, gas prices have stayed the course, with the national average price of gasoline declining for a fourth consecutive week as seasonal demand weakens and Americans begin to take refuge from falling temperatures,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
De Haan noted that some 28 U.S. states now enjoy average gas prices below $3 per gallon, as projected in GasBuddy’s annual Fuel Outlook from last December.
“With the median U.S. gas price now at $2.95 per gallon, the lowest since 2021, it appears to be just a matter of time before the national average falls below $3 per gallon for the first time since May 2021, something we’ve already seen for diesel prices, which many Americans will be thankful for as we get closer to Thanksgiving,” De Haan added.
Oil is the primary factor that determines gasoline prices in the United States, and commodity experts at Standard Chartered have predicted that U.S. oil production will not surge under Trump. StanChart points out that U.S. crude output clocked in at 13.40 million barrels per day (mb/d) in August 2024, an all-time high above the previous record of 3.31 mb/d set in December 2023.
Low gas prices come as a boon for American drivers ahead of the holiday season after years of pain at the pump. AAA has projected that 79.9 million travelers will travel at least 50 miles from their homes over the Thanksgiving holiday travel period.
By Alex Kimani for Oilprice.com
