U.S. drivers can rejoice as gas prices continue to plummet, with Thanksgiving Day prices expected to reach their lowest level since 2020. According to GasBuddy, a gallon of regular gas could fall to $3.25 on Thursday, reflecting a steady decline in prices over the past nine weeks.

Recent data from AAA reveals that the national average for a gallon of regular gas stood at about $3.31 on Monday, representing a decrease of 25 cents compared to a month ago and 36 cents lower than the same period in 2022. This downward trend is expected to culminate in the cheapest Thanksgiving Day gas prices since the height of the COVID-19 pandemic, when gas prices reached a low of $2.11 per gallon.

Gas prices have already dropped below $3 per gallon in 11 Southern and Midwestern states, including Alabama, Arkansas, Georgia, Iowa, Louisiana, Mississippi, Missouri, Oklahoma, South Carolina, Tennessee, and Texas. Additionally, more than 65,000 gas stations nationwide are offering gas at $2.99 per gallon or less, and another five states could witness average prices below $3 per gallon by Thanksgiving, according to Patrick de Haan from GasBuddy.

This decline in gas prices is expected to save Americans a significant amount of money during the holiday season. De Haan estimates that Americans will collectively spend about $1.2 billion less on gasoline from Monday through Sunday compared to the same period last year.

Moreover, industry experts predict that gas prices may continue to fall for another week or two, potentially dipping below last winter's bottom of $3.05 per gallon. However, the outcome of the upcoming OPEC meeting on November 26 could significantly impact future prices. A potential production cut by the Organization of Petroleum Exporting Countries could halt the downward trend, according to de Haan.

Despite the favorable trend in gas prices, some Americans still face financial constraints that hinder their ability to travel. Approximately 20% of respondents to GasBuddy's travel survey indicated that they cannot fit holiday travel into their budget due to inflation in other areas. Nevertheless, falling gas prices are largely attributed to a seasonal weakening of demand, complemented by a decline in oil prices over the past few weeks.

The recent decline in gas prices can be traced back to a drop in oil prices and concerns over softening demand. Last week, the U.S. benchmark, West Texas Intermediate, briefly entered a bear market, experiencing a 22% decrease since its September closing high. However, on Monday, U.S. crude traded higher at $78.02 per barrel, an increase of $2.13 or 2.81% from the previous session. This surge was driven by expectations that OPEC may announce further production cuts.

Gasoline demand also decreased to 8.9 million barrels per day in the week ending November 10, compared to 9.5 million barrels per day in the previous week, according to the U.S. Energy Information Agency. Simultaneously, domestic crude inventories rose by 3.6 million barrels, reaching a total of 439.4 million barrels, exceeding expectations. Despite these figures, U.S. crude production remains at a record rate of 13.2 million barrels per day.

As gas prices continue their downward trajectory ahead of the Thanksgiving holiday, millions of Americans are expected to take advantage of the affordability and embark on their travels. However, the outcome of the OPEC meeting and potential shifts in oil production levels may impact future prices. Nonetheless, for now, U.S. drivers can look forward to enjoying the lowest Thanksgiving Day gas prices since 2020.