U.S. Oil and Gas Association President Tim Stewart warns that Democratic energy policies threaten Texas oil production as gasoline prices are projected to stay above $3.70 a gallon in 2027.
EIA Projects Higher Gas Prices in 2027
The Energy Information Administration expects gasoline and diesel supplies to remain constrained through the end of 2027. EIA forecasts retail gasoline at $3.73 per gallon in 2027, up 5% from its October outlook of $3.56 and a decline from this year’s $3.89.
Diesel Prices Rise Amid Tight Supply
Diesel is projected at $5.03 per gallon in 2027, up from $4.49 a month earlier but still below 2026’s $5.25 level. EIA says global petroleum markets will face continued supply constraints through the end of 2027, supporting wider crack spreads and prompting higher U.S. refinery runs.
Gas Prices Drop Below $4 for First Time Since July
AAA data showed the national average fell to $3.94 per gallon on Wednesday, marking the first time since July that prices have slipped below $4. The decline follows an 18‑cent drop in a week and a 41‑cent drop in a month, driven by easing demand and improved supply conditions.
Inflation and Thanksgiving Costs
Consumer inflation accelerated in October, with the CPI rising faster than expected and adding pressure on household budgets. Higher fuel costs contribute to elevated prices for turkey and other holiday foods as family farms grapple with rising input expenses.
Middle East Supply Risks Keep Oil Prices High
Crude oil prices rose for a third consecutive month in October as inventories fell, tanker attacks in the Persian Gulf tightened supply, and shipping constraints increased transportation costs. The EIA projects Brent crude near $100 per barrel for the remainder of 2026 before easing to an average of $77 per barrel in the fourth quarter of 2027.
