Gas prices (RB=F) fall to an 11-month low, causing energy analysts to speculate could be closer to falling below $3 per gallon for the first time since 2021. Yahoo Finance Senior Business Reporter Ines Ferré breaks down trends in gasoline prices being perpetuated by crude oil demand stemming from OPEC+'s production cuts. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
U.S. gasoline futures dropped to their lowest level in two years on Wednesday after the Energy Information Administration (EIA) reported a larger-than-anticipated build in the motor fuel's stockpiles. Gasoline stocks rose by 5.4 million barrels to 223.6 million barrels in the week ended Dec. 1, the biggest increase in two months, the EIA reported. Product supplied of motor gasoline, the EIA's measure of demand, rose 3% last week to 8.46 million barrels per day, EIA data showed.
U.S. gasoline prices are the lowest they have been since January and by Christmas could fall below $3 a gallon for the first time since 2021, analysts said, which should boost consumer confidence during the holiday shopping season. "Gas prices being down this year has allowed me to invest more into my small business than I could last year," said Macey Ropes, a tie-dye clothing store owner in Lafayette, Indiana. Prices have softened with benchmark global oil prices, which settled on Tuesday at their lowest since July as traders worried about China's economy.