Gas Prices Drop For 5th Consecutive Week; Lowest NYE Level Since COVID

Gas prices experienced a significant decline in December, reaching a national average of $2.75 per gallon by the end of the month, the lowest since 2021. Diesel prices also decreased, settling at $3.52 per gallon on average. Increased domestic and global oil supply, fueled by higher U.S. production and OPEC+ output, contributed to the price drops. Despite ongoing sanctions, the market saw increased supply. According to GasBuddy, most states saw price decreases, with some stations even falling below $2 per gallon. Experts predict further declines before prices potentially bottom out in early 2026. U.S. crude oil production saw a substantial increase. Global inventories also rose, with China playing a major role in the inventory growth. However, crude oil prices rose on December 29th, suggesting potential price increases in the future. The report analyzed data from numerous gas stations across the United States, revealing regional price variations.