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EIA forecast raises 2027 gas prices outlook despite expected decline
Fox Business • • business
Key Points:
- The Energy Information Administration (EIA) raised its forecast for U.S. gasoline prices in 2027 to $3.73 per gallon, a 5% increase from last month's projection of $3.56, though still lower than 2026's average of $3.89.
- Diesel prices are also expected to be higher than previously forecasted, at $5.03 per gallon in 2027, up from $4.49, but below the $5.25 average seen in 2026.
- The EIA attributes the price increases to ongoing global supply constraints, including falling oil inventories, attacks on tankers in the Persian Gulf, and limited shipping capacity, which are expected to persist through 2027.
- Brent crude oil prices are forecasted to stay near $100 per barrel throughout 2026 before gradually declining to about $77 per barrel by late 2027.
- Meanwhile, consumer gasoline prices recently fell below $4 per gallon for the first time since July, with the national average dropping to $3.94, reflecting an 18-cent decrease from the previous week.
