Cheaper Gas Prices Ahead: Experts Predict Sub-$3 Per Gallon by 2025

Gas prices could drop to sub-$3 per gallon in the US by October/November, driven by a transition to cheaper winter gasoline and Americans staying closer to home during colder months. However, potential challenges include hurricane season and trade/trade uncertainty, which could impact refining capacity and oil production.

Gas prices in the US are expected to drop to sub-$3 per gallon by October/November, driven by a transition to cheaper winter gasoline and Americans staying closer to home during colder months. This shift could significantly impact the oil and gas industry, affecting both production and refining capacity.

The potential drop in gas prices is a result of several factors. The transition to cheaper winter gasoline, which is typically less expensive to produce and refine, is a key driver. Additionally, as Americans stay closer to home during colder months, demand for gasoline is expected to decrease, further contributing to the price drop.

However, there are potential challenges that could impact refining capacity and oil production. The ongoing hurricane season could disrupt refining operations and oil production, leading to temporary shortages and higher prices. Trade uncertainty, including potential disruptions in global oil markets, could also affect the stability of gas prices.

Range Resources Corporation (NYSE: RRC), a major player in the oil and gas industry, has been performing well operationally despite the challenges posed by weaker natural gas prices. The company reported solid production in Q2 2025, with total production averaging 2.197 Bcfe per day. While the company's free cash flow has been affected by the drop in natural gas prices, it has also benefited from tax changes and slight efficiency improvements, which have helped offset the impact.

The Maysan Refinery expansion project in Iraq, led by Prime Minister Mohammed Shia Al-Sudani, is another example of efforts to increase refining capacity. The project aims to expand the refinery's capacity from 40,000 to 110,000 barrels per day, contributing to Iraq's goal of converting 40% of crude oil exports into refined petroleum products by 2030.

In conclusion, while the expected drop in gas prices could present challenges for the oil and gas industry, it also presents opportunities for companies that can adapt to changing market conditions. The ability to navigate these challenges and take advantage of potential opportunities will be key for investors and financial professionals to consider.

References:
[1] https://seekingalpha.com/article/4816149-range-resources-tax-change-benefits-offsets-impact-from-weaker-natural-gas-prices
[2] https://en.964media.com/34423/