"After $5 a gallon gasoline prices and $100 a barrel oil at the start of the Ukraine war, both of those numbers could fall by half by next year. Goldman Sachs forecast the price of Brent crude futures contracts could decrease to the low $50s a barrel by late 2026. This is due to an expected increase in the global oil surplus next year. West Texas Intermediate crude, which is usually priced below Brent, could decline even further."
"Gasoline prices are primarily driven by oil prices. The average price for a gallon of regular gas is $3.21 now. That is down from $3.35 a year ago. In some states, mostly those near Gulf of Mexico refineries, the price has already dropped to below $2.80 a gallon. The prices are $2.71 in Mississippi and $2.73 in Oklahoma. The third component of gas prices, after oil and refineries, is state taxes per gallon."
Brent crude futures are expected to fall to the low $50s a barrel by late 2026 as a global oil surplus widens. The surplus is projected to average 1.8 million barrels per day from 2025 Q4 through 2026 Q4, adding nearly 800 million barrels to global stocks by end-2026. U.S. and OPEC+ production are at record levels, and West Texas Intermediate could decline further below Brent. Gasoline prices, driven mainly by oil, average $3.21 per gallon now, down from $3.35 a year ago, with some Gulf Coast states below $2.80. State fuel taxes range from $0.8655 in California to $0.3353 in Alaska, and lower gasoline prices would help reduce inflation given gasoline’s share of household budgets.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]