Ines Ferré · Senior Business Reporter Tue, December 2, 2025 at 7:00 PM GMT+8 2 min read In this article: - CL=F -0.19% RB=F -0.64%
Gasoline prices fell to an average of $3 per gallon this week to hit their lowest level since 2021.
As of Monday, at least 30 states saw an average of less than $3 at the pump, according to AAA data, as lower crude prices and less expensive winter blends give relief to drivers heading into the December holiday season.
“With refinery maintenance largely complete and OPEC increasing oil production for December, oil prices have struggled," GasBuddy's Patrick De Haan said on Monday.
"Combine those factors and you have a solid recipe for continued downward pressure on gas prices in the weeks ahead."
De Haan noted a handful of stations in the Midwest have even seen prices slip below $2 per gallon, with that number expected grow as the Christmas holiday season approaches.
NY Mercantile - Delayed Quote • USD (RB=F) Follow View Quote Details 1.8570 -0.0119 (-0.64%) As of 6:48:34 AM EST. Market Open. RB=F BZ=F CL=F Advanced ChartThe Organization of Petroleum Exporting Countries and its allies have increased output this year, sending Brent (BZ=F) and West Texas Intermediate (CL=F) futures down 14% and 16% year to date, respectively.
"OPEC supply increases in 2025 look aligned with the Trump Administration’s ambitions to lower gasoline prices ahead of the mid-terms," analysts from Citi said in a note on Monday.
OPEC recently announced it will stick with plans to pause output hikes in early 2026 as prices have come under pressure.
JPMorgan's commodities team led by Natasha Kaneva recently forecast that Brent will fall to $58 per barrel in 2026, with West Texas Intermediate trading $4 below this level.
In 2027, the firm sees prices falling by another $1 per barrel.
"At the risk of flogging a very dead horse, our message to the market has remained consistent since June 2023," JPMorgan strategists wrote. "While demand is robust, supply is simply too abundant."
The per-gallon prices for the three grades of gasoline are electronically displayed on a pump at an Exxon station Sunday, Nov. 30, 2025, in Littleton, Colo. (AP Photo/David Zalubowski) · ASSOCIATED PRESS Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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