Gas prices fall as oil drops below $100 a barrel
Gasoline prices are falling as crude oil plummets, with analysts predicting further drops at the pump.
(Photo via MarketWatch)
The average price for regular unleaded gasoline in the United States declined to $4.12 a gallon on Monday, Nov. 2, 2026. This decrease of 17.1 cents over the previous week represents the largest weekly drop since the week ending June 21.
The decline follows a significant shift in the oil market, where West Texas Intermediate crude oil fell 7.2% to trade at $96.60 a barrel. This move pushed oil prices below the $100-a-barrel threshold for the first time in recent trading sessions.
Market analysts attribute the drop in oil prices to expectations regarding a potential deal to end the U.S.-Iran war following the midterm elections. Reports have suggested that Iran may be willing to reopen the Strait of Hormuz, a critical waterway for global oil shipments.
Patrick De Haan, head of petroleum analysis at GasBuddy, stated that if oil prices continue to plummet, retail gas and diesel prices will follow. He noted that any further reduction at the pump may lag behind the drop in oil prices by two to four days.
Despite the current decline, gasoline prices remain approximately 38%, or $1.13, higher than they were one year ago. Analysts remain cautious about the future trajectory of these costs, with Pavel Molchanov, an investment-strategy analyst at Raymond James, noting that skepticism is warranted regarding the potential for a definitive deal to end the conflict.
Future price movements for consumers will depend on whether the current decline in oil prices is sustained and how geopolitical tensions between the U.S. and Iran evolve.