Oil prices have plummeted to a four-year low of $57.50 a barrel following OPEC+'s announcement to raise output by 411,000 barrels daily. This drop may lower average gasoline prices nationwide to below $3 per gallon, significantly impacting consumers. Contributing factors include U.S. production hitting record highs, along with ongoing crude exports from Russia. Economic concerns, particularly regarding a potential recession affecting China and U.S. consumer confidence, may also pressure prices downward, contrasting with previous spikes during geopolitical tensions.
Falling crude prices could take the average price of a gallon of regular gasoline nationwide to well below $3. Even during the COVID-19 pandemic, the average price per gallon remained well above $3.
Peter McNally, a Third Bridge analyst, noted that market share gains for producers outside of the OPEC+ group may have peaked if new barrels enter the market.
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