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Gas Prices Plunge Below $3: Supply Surplus Drives Drop

12/3/2025

23 3 Full Breakdown

Summary

Story summary

Gas prices have fallen below $3 per gallon for the first time in over four years, averaging $2.998 as of Tuesday, according to AAA.
The decline results from lower oil prices, with crude around $59 per barrel, down from $81 a year ago.
OPEC has increased output, contributing to a supply surplus, and analysts forecast Brent in the low-$50s by late 2026, barring geopolitical disruption such as tensions with Venezuela.

History

Historical Context

The 2014 oil crisis saw crude prices drop from $107 per barrel in June to around $50 by December, driven by OPEC's decision to maintain production despite a surge in U.S. shale output, which increased by 1 million barrels per day. This oversupply mirrors current trends, with gas prices falling below $3 per gallon, highlighting ongoing volatility in energy markets.

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Story summary

Gas prices have fallen below $3 per gallon for the first time in over four years, averaging $2.998 as of Tuesday, according to AAA.
The decline results from lower oil prices, with crude around $59 per barrel, down from $81 a year ago.
OPEC has increased output, contributing to a supply surplus, and analysts forecast Brent in the low-$50s by late 2026, barring geopolitical disruption such as tensions with Venezuela.

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