Short Answer

New Jersey gas prices are expected to remain above $3.80 per gallon at year-end 2026, supported by the EIA's forecast for Brent crude at $105/barrel in 4Q26 and current gasoline prices exceeding $4.25/gallon, a likelihood priced at 97.0% by the market.

1. Market Behavior & Drivers

The contract's upward momentum is primarily explained by the Energy Information Administration's (EIA) updated October 2026 outlook. Released on October 6, the EIA forecast Brent crude would average $105 per barrel in the fourth quarter of 2026. This forecast appears to have driven a 90 percentage point spike in the market's price on October 13.
The market saw its largest price increase earlier in the month, rising from near zero to 97% probability between October 1 and October 4. Available information does not point to a specific news event or catalyst for this initial jump. Low market liquidity, evidenced by approximately $4,000 in 24-hour volume and $425 in open interest, likely contributed to the magnitude of these price swings.
  • Prices above $3.70-$4.10 are probable, supported by EIA's $105/barrel Brent forecast.
  • Current New Jersey gasoline prices exceeding $4.25 also back elevated year-end outcomes.
  • The robust EIA Brent forecast boosts plausibility for prices reaching $4.90 or $5.00.

Who Wins and Why

Outcome Market Model Why
Above 3.8000 97.0% 97.2% EIA's $105/barrel Brent crude forecast for 4Q26 and high current NJ gas prices suggest elevated year-end prices.
Above 4.6000 89.0% 90.7% EIA's $105/barrel Brent crude forecast for 4Q26 and high current NJ gas prices suggest elevated year-end prices.
Above 3.9000 94.0% 94.5% EIA's $105/barrel Brent crude forecast for 4Q26 and high current NJ gas prices suggest elevated year-end prices.
Above 3.7000 94.0% 97.2% EIA's $105/barrel Brent crude forecast for 4Q26 and high current NJ gas prices suggest elevated year-end prices.
Above 4.7000 90.0% 90.7% EIA's $105/barrel Brent crude forecast for 4Q26 and high current NJ gas prices suggest elevated year-end prices.

Current Context

New Jersey prediction market median indicates year-end gas at $3.80. As of October 13, 2026, the specific prediction market for New Jersey year-end 2026 gas price shows a median of approximately $3.799 per gallon [1]. The nearest 50/50 threshold is $3.80, with 50% odds above this level [1]. Other displayed odds include 55% above $4.00 and 46% above $5.00 [1]. This market has limited liquidity, with about $4,000 in 24-hour volume and $425 in open interest, making it an indicative rather than a definitive forecast [1]. Other national gasoline prediction markets tend to focus on the possibility of a 2026 peak, with contracts often resolving on whether a threshold is crossed at any point during the year, not on the December 31 closing price [2]. For instance, one national market summary cited approximately 52% for above $4.60, 38.5% above $4.80, and 29% above $5.00 [2]. The EIA maintains a dedicated New Jersey motor-gasoline price series, but no current December 31, 2026 observation is available [3].
Official and expert forecasts offer a range for crude and gasoline. The EIA's October 6, 2026 outlook projects the U.S. retail gasoline average at $3.91 per gallon for full-year 2026, dropping to $3.56 for 2027 [4]. Brent crude is forecast to average $96 per barrel in 2026 and $84 in 2027 [4]. This full-year average differs from a specific December 31 spot or weekly price for New Jersey, but provides an official baseline [4]. Expert oil views are notably dispersed for late 2026. J.P. Morgan's July 16 outlook projected Brent at $80 per barrel in fourth-quarter 2026 and $78 at year-end [5]. Goldman Sachs, in an October 12 report, raised its December 2026 Brent forecast to $90 per barrel, with December WTI at $81, citing persistent West Asia supply risk while maintaining a base case of eventual market adaptation and lower prices [6].
A central estimate for New Jersey gas is $3.80 per gallon. The evidence-weighted central estimate for New Jersey regular gasoline on December 31, 2026, is about $3.80 per gallon, with a plausible base-case range of roughly $3.50–$4.20. This estimate is anchored by the New Jersey-specific prediction market median near $3.80, the EIA's $3.91 U.S. 2026 average, and expert forecasts for late-2026 Brent ranging from $78 to $90 per barrel [1]. This is not an official forecast. A downside scenario suggests prices around $3.20–$3.60 if supply normalizes, inventories rebuild, and Brent approaches the lower end of expert projections [1]. Conversely, an upside stress scenario of $4.50–$5.50 exists if West Asia supply or shipping disruptions persist or worsen [1]. Key developments to monitor include future EIA Short-Term Energy Outlook updates, OPEC+/Gulf production recovery, evolving shipping conditions, and any escalation or de-escalation of conflict in West Asia, which influence crude prices with a typical lag to gasoline [4].
Sources (6)
  1. 1New Jersey gas price at year-end 2026 — Live Odds | Frenzy Capitalfrenzycap.com
  2. 2Will average <strong>gas prices</strong> be above $5.00 by Dec 31, 2026? | Paritypredictparity.com
  3. 3Short-Term Energy Outlook - U.S. Energy Information Administration (EIA)eia.gov
  4. 4EIA Press Release (10/06/2026): EIA expects a mixed picture for winter fuel costs this yeareia.gov
  5. 5Oil Prices Forecast | J.P. Morgan Global Researchjpmorgan.com
  6. 6Goldman ups Dec'26 oil forecast to $90/bbl; 2027 worst-case pegged at $125 | Markets News - Business Standardbusiness-standard.com

2. Price Chart

Historical Price (Probability)

Outcome probability
Date

3. Significant Price Movements

Notable price changes detected in the chart, along with research into what caused each movement.

Outcome: Above 4.7000

📈 October 13, 2026: 90.0pp spike

Price increased from 0.0% to 90.0%

What happened: The primary driver of the 90.0 percentage point spike in the prediction market was likely the Energy Information Administration's (EIA) updated October 2026 outlook [1]. Released on October 6, 2026, days before the market movement, the EIA forecast Brent crude to average $105/barrel in 4Q26, a significant $14/barrel increase from the previous month's projection, citing Middle East disruptions and declining global inventories [1][2]. This traditional news announcement directly influenced expectations for year-end gasoline prices. Social media activity was not identified as a contributing factor in the available information.

Outcome: Above 3.8000

📉 October 08, 2026: 16.0pp drop

Price decreased from 16.0% to 0.0%

What happened: The reported 16.0 percentage point drop for the "New Jersey gas price at year-end 2026: Above 3.8000" contract on October 08, 2026, cannot be confidently attributed or explained, as available data for October 13 indicates an 89-point increase for this specific contract [3]. Around that date, the broader oil and energy market experienced significant bullish pressure from Hurricane Isaias shutting in Gulf crude output and Iran strike fears [4][5], which would typically suggest upward, not downward, movement for gas price forecasts. Consequently, without confirmed evidence of the reported price drop, identifying its primary driver, including any social media influence, is not possible.

Outcome: Above 3.7000

📉 October 06, 2026: 10.0pp drop

Price decreased from 20.0% to 10.0%

What happened: The primary driver of the 10 percentage point drop on October 06, 2026, was likely traditional news and announcements. On that day, the EIA (U.S. Energy Information Administration) announced its October outlook, forecasting the 2026 U.S. retail-gasoline average at $3.91 per gallon [1]. This outlook, coupled with broader reports of easing in gasoline and diesel prices after September records, appears to have prompted a downward revision in market expectations for year-end New Jersey gas prices [6][7]. Social media activity was irrelevant, as no related posts or viral narratives were identified in the provided sources.

📉 October 04, 2026: 81.0pp drop

Price decreased from 83.0% to 2.0%

What happened: The asserted 81.0 percentage point drop for the "Above 3.7000" outcome on October 4, 2026, is not supported by the available market data, which instead shows a 92 percentage point increase in probability for this outcome over 24 hours around that date, reaching 97% [3][8][9]. New Jersey gasoline prices were $4.31/gallon on October 4, 2026, consistent with high probabilities for staying above $3.7000 [10]. Consequently, identifying a primary driver for the specified drop is not possible, as the actual market movement was upward [3]. No social media activity or major news announcement was found that would have caused an 81.0 percentage point decline in the market's expectation for prices above $3.7000; therefore, social media was irrelevant to the described movement.

Outcome: Above 3.9000

📉 October 03, 2026: 66.0pp drop

Price decreased from 72.0% to 6.0%

What happened: The primary driver of the 66.0 percentage point drop for the "Above 3.9000" outcome on October 03, 2026, was traditional news reflecting a near-term easing of gasoline prices. Around October 1–2, 2026, New Jersey's average gas price fell 6 cents week-over-week to approximately $4.33 per gallon, while the national average dropped nearly 7 cents, following record-setting September pricing [11][12][13]. This decline was attributed to crude oil retreating into the $90-per-barrel range, alongside weaker gasoline demand and lower production [11][12][13]. Although spot prices remained well above $3.9000 [14], these improving short-term fundamentals likely reduced market expectations for year-end prices staying strictly above the threshold, causing the price drop. Social media activity could not be tied to this specific price movement and appears irrelevant [3][15][16].
Sources (16)
  1. 1EIA Press Release (10/06/2026): EIA expects a mixed picture for winter fuel costs this yeareia.gov
  2. 2EIA: October STEO | Hydrocarbon Engineeringhydrocarbonengineering.com
  3. 3New Jersey gas price at year-end 2026 — Live Odds | Frenzy Capitalfrenzycap.com
  4. 4Hurricane Isaias Shuts In 63% of Gulf Oil Output as Pump Prices Hold Near $4.40 | Market Reviewmarketreview.news
  5. 5Oil settles circa 4% higher as two supply threats collide: Iran strike fears and Hurricane Isaiasinvestinglive.com
  6. 6U.S. Gasoline and Diesel Prices Ease, But Remain Sharply Higherroic.ai
  7. 7EIA Weekly Fuel Update: Gasoline and Diesel Prices Ease - News and Statistics - IndexBoxindexbox.io
  8. 8New Jersey gas price at year-end 2026 Odds & Predictionskalshi.com
  9. 9New Jersey gas price at year-end 2026 - Probabilidades na Kalshi | CoinRithmcoinrithm.com
  10. 10New Jersey Gas Prices (October 04, 2026): $4.31/gal, $0.06 Below U.S. Average | Energy Factbookenergyfactbook.com
  11. 11AAA reports national average gasoline price eased after record-setting September; price in N.J. slid 6 cents | ROI-NJroi-nj.com
  12. 12New Jersey Drivers See Gas Relief After Record-High September - Community Newscommunitynews.org
  13. 13National gas price drops 7 cents after record-setting September, AAA says - WRNJ Radiowrnjradio.com
  14. 14New Jersey gas prices tomorrow - Kalshi Odds | CoinRithmcoinrithm.com
  15. 15New Jersey gas price at year-end 2026 - Kalshi noteringen | CoinRithmcoinrithm.com
  16. 16AAA says gasoline prices nationwide staying at record highs for autumn; price down 6 cents in N.J. | ROI-NJroi-nj.com

4. Market Data

Contract Snapshot

This contract resolves to YES if the New Jersey gas price at year-end 2026 is above $4.3000, and to NO if it is $4.3000 or less. The market is set to resolve on December 30, 2026. No special settlement conditions are explicitly detailed in the provided content.

Available Contracts

Market options and current pricing

Outcome bucket Yes (price) No (price) Last trade probability
Above 3.8000 $0.99 $0.98 97%
Above 3.7000 $1.00 $0.91 94%
Above 3.9000 $1.00 $1.00 94%
Above 4.5000 $1.00 $1.00 91%
Above 4.0000 $0.99 $0.91 90%
Above 4.1000 $0.98 $0.98 90%
Above 4.4000 $0.97 $0.90 90%
Above 4.7000 $0.98 $0.91 90%
Above 4.3000 $0.97 $0.92 89%
Above 4.6000 $0.99 $0.90 89%
Above 4.8000 $0.91 $0.98 89%
Above 4.9000 $0.91 $1.00 9%
Above 5.0000 $0.90 $1.00 6%
Above 4.2000 $0.91 $0.98 3%

Market Discussion

No direct official forecast for the average regular New Jersey gasoline price on December 31, 2026, is readily available [1][2][3][4][5]. The U.S. Energy Information Administration (EIA) projected a U.S.

Sources (5)
  1. 1EIA Press Release (10/06/2026): EIA expects a mixed picture for winter fuel costs this yeareia.gov
  2. 2Table 2. Energy Prices U.S. Energy Information Administration | Short-Term Energy Outlook - September 2026eia.gov
  3. 3Short-Term Energy Outlook - U.S. Energy Information Administration (EIA)eia.doe.gov
  4. 4New Jersey Prices, Sales Volumes & Stockseia.gov
  5. 5New Jersey Gas | Truflationtruflation.com

5. Trust Index

Octagon Trust Index Kalshi 66 Caution

Primary risk· Trade quality

How it adds up
Integrity80% of score78Good

Market integrity is low (68), but Integrity averages all three scores, so the other two pull it up. Only a critically low score would cap the total.

Trade quality20% of score18Avoid
Trust score66Caution

Weighted blend with hard caps — a critically weak safety pillar, or a severe trading anomaly, caps the total regardless of the rest. Full methodology · About the Trust Index

Trust profile
Integrity4 screens run · 6 don't apply

6. How do Goldman Sachs' and J.P. Morgan's divergent Q4 2026 crude oil forecasts translate to potential year-end New Jersey gasoline prices?

Crude-to-gasoline price conversionA $10/bbl difference in Q4 crude translates to approximately $0.24/gallon at crude-input level [1][2]
Current WTI Crude Oil PriceAround $91-$92/bbl (as of October 13, 2026) [1][2]
Prediction Market Resolution DateDecember 31, 2026 for "New Jersey gas price at year-end 2026" [1][3]
Direct conversion of crude oil forecasts to New Jersey gasoline prices is not feasible with the available information. Verifiable Q4 2026 crude oil forecasts for Goldman Sachs or J.P. Morgan are not provided, nor is a primary-source New Jersey gasoline pricing formula [4]. A defensible translation from crude to pump prices requires assumptions beyond crude alone, encompassing refining margins, gasoline basis, seasonal demand, taxes, distribution, and retailer margins [4].
A hypothetical $10/bbl crude difference impacts pump prices significantly. If Goldman Sachs represented a lower-crude case and J.P. Morgan a higher-crude case, a $10 per barrel difference in Q4 crude would typically translate to approximately $0.24 per gallon at the crude-input level, before accounting for refining, tax, and margin effects [1][2]. In this conditional scenario, a banking forecast with higher oil prices would plausibly push New Jersey year-end gasoline toward or above $3.70, while a lower-oil case would point below it, assuming all other factors remain constant [1][2]. As of October 13, 2026, market evidence indicates WTI is trading around $91-$92 per barrel, with November WTI at approximately $92.27 and December WTI at about $91.35 [1][2].
Prediction market data for New Jersey gas prices is unreliable. The prediction market for "New Jersey gas price at year-end 2026" resolves on December 31, 2026 [1][3]. Although this listing displays thresholds like above $3.70 and above $4.20, it appears sparse and internally counterintuitive, and therefore should not be considered a reliable point forecast [1][2][3].
Sources (4)
  1. 1Annual Commodities Markets Commodities Odds & Predictions 2026kalshi.com
  2. 2Crude Oil Price Today | WTI OIL PRICE CHART - Markets Insidermarkets.businessinsider.com
  3. 3New Jersey gas price at year-end 2026 Odds & Predictionskalshi.com
  4. 4Crude Oil - Price - Chart - Historical Data - Newstradingeconomics.com

7. What potential OPEC+ production decisions or West Asian supply disruptions in H2 2026 could cause a significant deviation from the EIA's price forecast?

EIA Brent Price Forecast H2 2026about $90/barrel (EIA [1][2][3][4])
EIA 2026 Annual Retail Gasoline Forecast$3.84/gallon (EIA [1][2][3][4])
Strait of Hormuz Seaborne Oil Trade20 million barrels per day (approx. 25% of global [5][6][7])
OPEC+ actions or West Asian disruptions could alter H2 2026 oil prices. The U.S. Energy Information Administration (EIA) forecasts Brent crude prices around $90 per barrel and an annual retail gasoline price of $3.84 per gallon for the second half of 2026 [1][2][3][4]. This baseline forecast assumes a normalization of conditions, including increased Strait of Hormuz traffic and restored shut-in production [1][2][3][4]. However, significant deviations from these price expectations could result from changes in OPEC+ production policy or renewed supply disruptions in West Asia [1][2][3][4].
OPEC+ policy significantly influences potential oil price changes. The group maintains flexibility to adjust its voluntary-adjustment phaseout through monthly reviews, making its decisions a material factor [8][9][10]. An upside price deviation, meaning higher prices, could occur if OPEC+ pauses or reverses planned production increases, tightens existing quotas, or more aggressively enforces compensation for overproduction [8][9][11][10]. Conversely, a downside price deviation could result from OPEC+ accelerating the planned phaseout and restoring additional voluntary barrels to the market [8][9][11][10].
Strait of Hormuz disruption poses the most substantial upside risk. A renewed or prolonged disruption in the Strait of Hormuz is considered the most significant upside risk to oil prices [5][6][7]. This critical waterway facilitated approximately 20 million barrels per day of oil traffic in 2025, accounting for about 25% of global seaborne oil trade [5][6][7]. Bypass capacity around the Strait is limited to an estimated 3.5 to 5.5 million barrels per day, meaning a prolonged closure would lead to a substantial price spike and rapid physical shortages [5][6][7]. Current West Asian disruption risks are already evident, with August Hormuz flows significantly below pre-war levels, and Houthi attacks have impacted Saudi and UAE bypass routes and Saudi oil facilities [5][12][13]. The International Energy Agency (IEA) notes that a prolonged closure would render most global spare capacity, particularly Saudi capacity, inaccessible [5][6][7].
Sources (13)
  1. 1Short-Term Energy Outlookeia.gov
  2. 2Table 2. Energy Prices U.S. Energy Information Administration | Short-Term Energy Outlook - August 2026eia.gov
  3. 3Short-Term Energy Outlook - U.S. Energy Information Administration (EIA)eia.gov
  4. 4Short-Term Energy Outlook - U.S. Energy Information Administration (EIA)eia.gov
  5. 5Oil markets strain to plug the gap left by Middle East supply shortfall - IEAiea.org
  6. 6Strait of Hormuz - About - IEAiea.org
  7. 7How global oil supplies have readjusted to help fill the huge gap left by the Strait of Hormuz shock – Analysis - IEAiea.org
  8. 8Organization of the Petroleum Exporting Countriesopec.org
  9. 9Organization of the Petroleum Exporting Countriesopec.org
  10. 10Organization of the Petroleum Exporting Countriesopec.org
  11. 11Feature article:opec.org
  12. 12Houthi missile attack targets Saudi capital Riyadh for third...aljazeera.com
  13. 13Saudi Arabia Faces More Attacks as It Reels From Airport...nytimes.com

8. What evidence justifies the current market pricing near $3.80, when the EIA's national average forecast for 2026 is higher at $3.91?

New Jersey Year-End 2026 Gas Price~$3.80 [1][2]
EIA National Annual Average 2026 Gas Price$3.91 per gallon [1][3]
EIA 2026 Brent Crude Forecast$96/barrel [1]
New Jersey's year-end price differs from EIA's national annual forecast. Market pricing for New Jersey gas at year-end 2026 is observed near $3.80, a figure that distinguishes itself from the U.S. Energy Information Administration (EIA)'s national annual average forecast of $3.91 for 2026 [1][2]. This difference is largely due to the market's focus on a specific year-end New Jersey spot observation, which inherently differs from a national annual average and incorporates the expectation of price fluctuations throughout the year [1][3]. The EIA's October 6, 2026, outlook indeed forecasts the U.S. retail gasoline price at $3.91 per gallon as the annual average for 2026, alongside an anticipated Brent crude price of $96/barrel [1]. It is important to recognize that the EIA's published forecasts cover average monthly, quarterly, and annual U.S. retail regular-grade gasoline prices, including all relevant taxes, making a direct comparison with a New Jersey year-end contract an inaccurate "apples-to-apples" comparison [3][1].
A lower year-end price is plausible despite a higher annual average. A year-end price hovering around $3.80 is considered economically plausible even with a higher annual average of $3.91 [1][2]. This scenario could occur if gasoline prices were elevated earlier in 2026, possibly due to factors like the EIA's $96 Brent crude assumption, and then experienced a decline towards the close of the year [1][2]. Although crude oil has historically been the primary determinant of gasoline prices, contributing slightly over 50% to the retail average, its share is projected to fall below 45% in 2026-2027. This shift allows other factors such as refinery capacity, regional refinery margins, taxes, formulation, and distribution to significantly influence and differentiate New Jersey prices from the national average [4]. Prediction market data from October 1, 2026, indicated support for a year-end New Jersey price near $3.80, with specific bids and asks for "Above $3.80" [2][5]. It should be noted that the market's $3.80 figure is best understood as an implied threshold or bracket price rather than a precise point forecast [2].
Sources (5)
  1. 1EIA Press Release (10/06/2026): EIA expects a mixed picture for winter fuel costs this yeareia.gov
  2. 2Kalshi Markets: HBO, EUR/USD, Tesla Energy Updatespredictionnewsnetwork.com
  3. 3Gasoline prices and outlook - U.S. Energy Information Administration (EIA)eia.gov
  4. 4EIA expects lower gasoline prices in 2026 and 2027 as crude oil prices fall - U.S. Energy Information Administration (EIA)eia.gov
  5. 5Annual Commodities Markets Commodities Odds & Predictions 2026kalshi.com

9. Which specific EIA or AAA data series will be used for market resolution, and what is the historical fourth-quarter price spread between them for New Jersey?

Market Resolution DateDecember 31, 2026 [1][2]
AAA National Avg Gas (Oct 11, 2026)$4.3585 [3][4]
AAA National Avg Gas (Dec 18, 2025)$2.896 [5]
Specific data series and historical price spreads for New Jersey are undetermined. The specific EIA or AAA data series designated for market resolution, along with the historical fourth-quarter price spread between these series for New Jersey, cannot be determined from the provided research [1][6][2][3][4][5]. Although the market "New Jersey gas price at year-end 2026" is scheduled to resolve on December 31, 2026, the resolution rules for this market remain undisclosed. The search results do not specify the exact EIA or AAA series to be used, the relevant publication date, the observation method, or any fallback procedures [1][6][2].
Historical fourth-quarter New Jersey observations for calculations are absent. The necessary New Jersey historical fourth-quarter observations required for calculating price spreads are currently absent from the available data [3][4]. While AAA has reported national average retail gasoline prices, including figures such as $4.3585 on October 11, 2026, $4.3556 on October 12, 2026, and $2.896 on December 18, 2025, these national averages do not provide the specific New Jersey data needed for market resolution or for comparison with potential EIA data [3][4][5].
Sources (6)
  1. 1New Jersey gas price at year-end 2026 Odds & Predictionskalshi.com
  2. 2Kalshi Markets: HBO, EUR/USD, Tesla Energy Updatespredictionnewsnetwork.com
  3. 3AAA Fuel Pricesgasprices.aaa.com
  4. 4AAA Fuel Pricesgasprices.aaa.com
  5. 5AAA Fuel Pricesgasprices.aaa.com
  6. 6Annual Commodities Markets Commodities Odds & Predictions 2026kalshi.com

10. What actions related to the U.S. Strategic Petroleum Reserve (SPR) could the Department of Energy take in 2026 that would materially affect domestic gasoline prices?

DOE-authorized release172 million barrels [1]
Exchange volume45.2 million barrels for 55 million returned [1]
Return premiumRoughly 28% [2][3][4]
SPR releases effectively lower gasoline prices during supply disruptions or tight markets. The Department of Energy (DOE) can significantly influence domestic gasoline prices in 2026 through actions related to the Strategic Petroleum Reserve (SPR) [1][2][3][5][4]. Scenarios with the highest impact on year-end 2026 New Jersey gasoline prices involve new emergency drawdowns or extensions of existing releases, which would likely lower prices [1][2][3][5][4]. Such releases are most effective in reducing gasoline prices when they add physical barrels during periods of supply disruption or tight refinery markets [1][2][3][5][4]. A notable past SPR action included a DOE-authorized release of 172 million barrels, delivered over approximately 120 days, which featured an exchange of 45.2 million barrels for 55 million returned, aimed at providing near-term crude to refiners and increasing eventual inventory [1].
Rapid replenishment or delayed releases typically increase gasoline prices temporarily. Conversely, actions that remove barrels from immediate availability or increase future demand expectations can materially raise crude prices, especially in tight markets, thereby impacting gasoline prices [1][2][3][5][4]. These scenarios, which exert upward pressure on gasoline prices, include a slowdown or cancellation of releases combined with aggressive refill purchases, or delays in scheduled releases [1][2][3][5][4]. While large exchanges that release oil immediately but require premium barrels to be returned later might have a short-term bearish effect, they could become neutral or mildly bullish as inventory is rebuilt [1][2][3][5][4]. The DOE’s 2026 solicitations for replenishment initially covered up to 92.5 million barrels, with an additional 40 million, and a completed 53.3-million-barrel tranche secured an approximate 28% return premium [2][3][4]. However, the overall effect on gasoline prices at the pump is typically temporary and smaller than the impact on the crude market, as gasoline prices also reflect refining margins, distribution, taxes, seasonality, and local conditions [1][2][3][5][4].
Sources (5)
  1. 1United States to Release 172 Million Barrels of Oil From the Strategic Petroleum Reserve | Department of Energyenergy.gov
  2. 2Energy Department Issues RFP to Advance President Trump’s 172-Million-Barrel Strategic Petroleum Reserve Exchange | Department of Energyenergy.gov
  3. 3Energy Department Awards Contracts from the Strategic Petroleum Reserve, Advancing President Trump’s Historic Emergency Exchange | Department of Energyenergy.gov
  4. 4Energy Department Issues RFP to Continue Swift Execution of President Trump’s 172-Million-Barrel Strategic Petroleum Reserve Exchange | Department of Energyenergy.gov
  5. 5Energy Department Begins Delivering SPR Barrels at Record Speeds | Department of Energyenergy.gov

11. What Could Change the Odds

Key Catalysts

The Kalshi New Jersey year-end gasoline market, as of October 13, 2026, implies a median settlement price of about $3.799/gal; the closest 50/50 threshold is Above $3.80 [1][2]. This market displays roughly 55% for Above $4.00 and 50% for Above $4.50 [1][2]. With approximately $4,000 24-hour volume and $425 open interest, the implied distribution is noisy [1][2]. The market's approximately $3.80 year-end median represents a forecast decline of roughly $0.50/gal from the current New Jersey regular-gasoline reference of approximately $4.26-$4.31/gal in early-to-mid October 2026 [3][4]. New Jersey's gasoline tax is 49.1 cents/gal for all of 2026, comprising a 38.6-cent Petroleum Products Gross Receipts Tax and a 10.5-cent Motor Fuels Tax [5][6]. The published rate table confirms 38.6 cents applies through December 31, 2026, meaning no scheduled tax step-up occurs on December 31 itself [5][6]. EIA explains that gasoline prices are driven mainly by crude oil and wholesale product prices, with taxes included in retail prices [7].
EIA's September/October 2026 outlook projects U.S. average retail regular gasoline at $3.91/gal in 2026 and $3.56/gal in 2027, while forecasting Brent at approximately $105/b in 4Q26 before falling to $84/b in 2027 as oil flows normalize and inventories rebuild [8]. The central bearish catalyst for late-2026 gasoline is normalization of Strait of Hormuz shipping and restoration of shut-in production [9][10]. EIA's August outlook expected Brent to decline toward about $78/b in 4Q26 and global inventories to rebuild in 2027 [9][10].
Principal bullish risks include persistent Middle East disruption, falling global inventories, tight distillate/refining markets, and low U.S. distillate stocks [11][12]. EIA reported September U.S. gasoline at $4.35/gal and Brent at $114/b [11][12]. It also reported global inventories down 1.9 million b/d in 3Q26 and projected another 0.7 million b/d draw in 4Q26 [11][12]. For trading purposes, the key distinction is between the market's threshold ladder and a continuous forecast: each Kalshi Above/Below strike is a separate binary contract, and final settlement depends on the market's specified source and rules [1][13].

Key Dates & Catalysts

  • Strike Date: December 31, 2026
  • Expiration: January 07, 2027
  • Closes: December 31, 2026
Sources (13)
  1. 1New Jersey gas price at year-end 2026 Odds & Predictionskalshi.com
  2. 2New Jersey gas price at year-end 2026 — Live Odds | Frenzy Capitalfrenzycap.com
  3. 3New Jersey Gas Prices Today — Regular $4.31/gal · Diesel $6.32fuelwide.com
  4. 4AAA says gasoline prices nationwide staying at record highs for autumn; price down 6 cents in N.J. | ROI-NJroi-nj.com
  5. 5Department of the Treasurynj.gov
  6. 6NJ Division of Taxation - Petroleum Products Gross Receipts Taxnj.gov
  7. 7Gasoline prices and outlook - U.S. Energy Information Administration (EIA)eia.gov
  8. 8Short-Term Energy Outlook - U.S. Energy Information Administration (EIA)eia.gov
  9. 9Short-Term Energy Outlook - U.S. Energy Information Administration (EIA)eia.doe.gov
  10. 10Short-Term Energy Outlook - U.S. Energy Information Administration (EIA)eia.doe.gov
  11. 11EIA Press Release (10/06/2026): EIA expects a mixed picture for winter fuel costs this yeareia.gov
  12. 12Mixed outlook for energy expenditures this winter - U.S. Energy Information Administration (EIA)eia.gov
  13. 13Kalshi settlement rules and sources, 2026mostlyright.md