National Average Falls to Lowest Since 2021; Next Stop, $2.99?

For the seventh straight week, the nation’s average price of gasoline has declined, falling 0.6 cents compared to a week ago, and stands at $3.00 per gallon today, the lowest level since May 2021, according to GasBuddy® data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. The national average is down 7.7 cents from a month ago and is 23.2 cents per gallon lower than a year ago. The national average price of diesel has risen 1.1 cents in the last week and stands at $3.514 per gallon.

“Millions took to the road for Thanksgiving, and while some regions, like the Great Lakes, saw gas prices rise just in time for travel, most of the nation saw prices hold mostly stable or decline slightly as the national average remains near the lowest level we’ve seen since 2021,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “The weeks ahead should feature slight drops in gas prices in most areas, with over 100,000 stations now offering a gallon for $2.99 or less, which should stick around through the holiday shopping season. While the potential impacts from tariffs are something to watch, they would have no effect until late January, if implemented at all. For this week, all eyes will be on the previously delayed OPEC+ meeting on Thursday. If they begin to restore oil production, oil prices could soften to the mid-$60s.”

OIL PRICES

As the energy market awaits the OPEC+ meeting later this week, oil prices have continued to soul-search in the $60s over the last week, caught between tensions with Russia and Ukraine, a peace deal in the Middle East, an economic slowdown in China, and beyond. In early Monday trade, a barrel of WTI crude oil was up $1.01 per barrel to $69.01, down from last Monday’s $71.18 per barrel level. Brent crude oil was also in the black early on, up 91 cents to $72.75 per barrel, down from $75.14 per barrel last Monday. OPEC members will likely mull over extending their production cuts for yet another month, though one must see a partial opening for additional oil if President-elect Donald Trump cranks up sanctions on Iran, and potentially Venezuela and tariffs Canadian crude.

OIL AND REFINED PRODUCTS

Last week’s report from the EIA showed a 1.8 million barrel drop in U.S. crude oil inventories, which are 5% below the five-year seasonal average, while the SPR tacked on 1.2 million barrels. Domestic crude oil production bounced back, rising 292,000 bpd to 13.49 million, while gasoline inventories rose 3.3 million barrels and distillate inventories rose 400,000 barrels. Refinery utilization rose 0.3 percentage points to 90.5 percent, while exports rose to 11.32 million barrels per day.

GAS PRICE TRENDS

The most common U.S. gas price encountered by motorists stood at $2.99 per gallon, unchanged from last week, followed by $2.89, $2.79, $3.09, and $2.69 rounding out the top five most common prices.

The median U.S. gas price is $2.93 per gallon, up 4 cents from last week and about 7 cents lower than the national average.

The top 10% of stations in the country average $4.16 per gallon, while the bottom 10% average $2.40 per gallon.

The states with the lowest average prices: Oklahoma ($2.39), Texas ($2.52), Mississippi ($2.56).

The states with the highest average prices: Hawaii ($4.46), California ($4.34), and Washington ($3.92).

Biggest weekly changes: Ohio (+12.3¢), New Mexico (-9.7¢), Indiana (+9.2¢), Texas (-7.6¢), Iowa (-7.5¢)

DIESEL PRICE TRENDS

The most common U.S. diesel price stood at $3.49 per gallon, unchanged from last week, followed by $3.39, $3.29, $3.69, and $3.59 rounding out the top five most common prices.

The median U.S. diesel price is $3.43 per gallon, up 2 cents from last week and about 8 cents lower than the national average for diesel.

Diesel prices at the top 10% of stations in the country average $4.33 per gallon, while the bottom 10% average $2.91 per gallon.

The states with the lowest average diesel prices: Oklahoma ($2.96), Texas ($3.10), and Mississippi ($3.08).

The states with the highest average diesel prices: Hawaii ($5.29), California ($4.81), and Washington ($4.30).

Biggest weekly changes: Texas (+9.3¢), Ohio (+9.1¢), Indiana (+8.8¢), South Dakota (+8.6¢), Delaware (-5.7¢).