US common gasoline worth drops under $3 a gallon for the primary time since 2021

By Shariq Khan and Nicole Jao

NEW YORK (Reuters) – Common U.S. gasoline costs fell under $3 a gallon for the primary time in over three years on Monday, extending a run of bargains on the pump for shoppers who’ve confronted hovering inflation in recent times.

Gas costs have been declining steadily for the reason that finish of the height summer season driving season, serving to enhance shopper spending whilst progress on broader inflation confirmed indicators of stalling in October, with costs of different items and companies climbing.

The nationwide common worth for normal gasoline fell to $2.97 per gallon on Monday, the bottom since Might 2021, in response to market-tracker GasBuddy.com.

The common retail worth in Oklahoma was the bottom within the nation, at $2.42 per gallon. Hawaii had the very best common costs, at $4.48 a gallon.

The price of a gallon of gasoline has dropped steadily this 12 months in comparison with final, as gasoline demand progress stalled from the feverish post-pandemic tempo of latest years.

“One would want to depend over 1,300 days since we’ve seen the nationwide common this low, with the affordability of gasoline at its lowest non-COVID degree since 2015,” mentioned Patrick De Haan, head of petroleum evaluation at GasBuddy.

Extra downward strain on gasoline costs will seemingly proceed, with the nationwide common probably dropping one other 10 to fifteen cents by Christmas, he added.

Product provided of completed motor gasoline, the U.S. Power Data Administration’s proxy for demand, rose by simply 11,000 barrels per day within the first 9 months of this 12 months versus the identical interval final 12 months.

Demand grew by 115,000 bpd in 2023 versus 2022 ranges.

In the meantime, gasoline availability improved as refining capability grew within the U.S. and in different elements of the world, easing a few of the sting from world provide disruptions attributable to Russia’s invasion of Ukraine. That battle induced U.S. gasoline costs to leap to a document excessive of over $5 per gallon in 2022.

U.S. oil refining capability rose for the second 12 months in a row final 12 months, the EIA’s annual replace confirmed earlier this 12 months. Elsewhere, refining capability has been boosted by the opening of huge new crops, resembling Nigeria’s 650,000 bpd Dangote refinery and Mexico’s 340,000 bpd Dos Bocas.