"The average price of a gallon of gasoline nationwide recently slipped below $3. Due to the war in Ukraine and concerns about the oil supply, it topped $5 in mid-2022. It was as low as $2.15 in 2020 at the start of the COVID-19 pandemic. And it was about that low in 2016, due primarily to an oversupply of oil, resulting from the shale boom."
"The supply issue has returned. The International Energy Agency says oil supplies could continue to increase until 2030. Demand could stay high until 2050. One reason for the rise is the lack of worldwide clean energy policies and any effort to enforce those if they emerge. Another reason is that OPEC+ has increased production. The United States is pumping oil at a record pace."
"The circumstances of the long term are different. Three factors have the most significant influence on gas prices. One is the price of oil. Benchmark West Texas Intermediate crude was $80 a barrel at the start of this year and recently dropped below $60. Bank of America recently forecast that the price of Brent crude could fall as low as $50, given OPEC+'s current production."
The average gasoline price slipped below $3 nationwide after peaking above $5 in mid-2022 because of the war in Ukraine and oil-supply concerns. Prices reached $2.15 at the start of the COVID-19 pandemic in 2020 and were similarly low in 2016 due to an oil oversupply from the shale boom. The International Energy Agency projects oil supplies could increase until 2030 while demand could remain high until 2050. Drivers include weak global clean-energy policies, OPEC+ production increases, and record U.S. oil output. Regional prices vary by refinery location, transportation costs, and state fuel taxes.
Read at 24/7 Wall St.
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