HAPPY NEW YEAR: Oil and gas prices expected to stay significantly lower through 2026.

Oil and gasoline prices are expected to decline next year, according to a recent forecast from the Energy Information Administration (EIA).

The EIA published its Short-Term Energy Outlook in November, which projected that the price of Brent crude oil will decline from $69 a barrel in 2025 to $55 a barrel next year. That would be well below the $81 per barrel that prevailed in 2024.

Gas prices are also projected to continue their decline into next year. Retail gas prices averaged $3.30 a gallon in 2024 and are at $3.10 a gallon this year, but are projected to decline further to $3 a gallon in 2026, according to the EIA’s report.

U.S. production of crude oil picked up this year and is expected to remain at the level in 2026, with the EIA finding the U.S. produced 13.2 million barrels per day in 2024. The agency projected crude oil production will be 13.6 million barrels per day in 2025 – the same as in 2026.

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