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National Gasoline Prices Fall To 3-Year Low
The U.S. national average price of gasoline fell to $3.03 per gallon on Monday, the lowest level since May 2021, down 16.7 cents from a month ago and 32.3 cents per gallon from a year ago. Diesel prices have followed a similar trend, with the national average clocking in at $3.52 per gallon compared to $4.37 a gallon a year ago.
“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.
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De Haan noted that some 28 U.S. states now enjoy average gas prices below $3 per gallon, as projected in GasBuddy’s annualFuel Outlookfrom last December.
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“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.
U.S. crude production has increased by 4.7 mb/d since the pandemic-era low of May 2020; however, it’s just 0.4 mb/d higher than the pre-pandemic high of November 2019, working out to an annual production growth rate of just 80 thousand barrels per day (kb/d) over this timeframe. Further, the growth clip is forecast to continue to slow down in the current year and in 2025. U.S. liquids supply increased by 1.605 mb/d in 2023, but StanChart has forecast growth of just 630 kb/d in 2024, slowing further to 300 kb/d in 2025.
By Alex Kimani for Oilprice.com
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Source: https://oilprice.com/
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