Your Money Minute Gas Prices Could Stay Low For A While 10/21/25
Oct 21, 2025
Gas prices may remain low due to a surging global oil supply, with a projected increase of 3 million barrels daily this year. Excess production and declining demand could create a surplus, further driving prices down at the pump. Discussions around tariffs also highlight reduced demand from China, impacting global oil consumption. Current oil prices hover around $57-59 per barrel, while companies typically seek around $65 to profit. It’s an insightful look into the dynamics shaping gas prices.
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Surge In Global Oil Supply
- Global oil supply is surging and looks set to rise by millions of barrels per day this year and next.
- Jessica Ettinger says that excess supply boosting inventories can create a bloated market and lower pump prices.
Supply Outpacing Demand Lowers Prices
- The IEA expects supply to rise about 3 million barrels a day this year and 2 million next year, flooding inventories.
- Jessica Ettinger explains that too much production and weaker demand is basic Econ 101 that can push prices down.
Lower Demand Can Be Temporary
- Lower gasoline demand can stem from policy and economic shifts, making lower prices temporary but plausible.
- Jessica Ettinger warns the situation can change quickly for many reasons, so lower prices may not be permanent.