U.S. Gasoline Falls Below $4 as Crack Spreads Narrow Ahead of Thanksgiving

The U.S. national average for regular gasoline has slipped below $4 a gallon as narrower gasoline and diesel crack spreads point to easing fuel-market tightness, with Thanksgiving travel a little more than two weeks away.

Crude prices have declined in recent weeks alongside pump prices. Traders were also weighing diplomacy around the Iran war and efforts to restore Middle East energy supplies.

President Donald Trump said Monday that additional strikes were not needed, while describing U.S. forces as “locked and loaded.” His remarks followed a conversation with Qatar's prime minister and foreign minister, Sheik Mohammed bin Abdulrahman bin Jassim Al-Thani.

Eurasia Group analysts Gregory Brew and Clayton Allen lowered their odds of further escalation in the Gulf to 30% from 60%. They said the “political window for escalation has closed,” citing constraints on Trump after last week's midterm elections and opposition within his administration and among Republicans.

AAA had not yet issued its forecast for this Thanksgiving travel season.