Gas Prices Expected to Continue to Fall Below $2 a Gallon
The fuel-savings app, GasBuddy, claims that gas prices could be driven below the $2 a gallon price range as COVID-19 continues to stretch across the world. OPEC proposed to help rescue the oil market, currently taking a large hit due to the virus, by cutting production of oil. Russia refused to do so during the meeting, and Saudi Arabia started a price war against Russia.
The average price per gallon for unleaded gas has dropped three cents, now $2.40 a gallon. It is expected to drop even further as the winter driving season winds down. With the slowing down of production, gas prices would level out and eventually increase due to demand. With Russia refusing OPEC's proposal, crude prices could still decrease even further.
As of January 2020, crude prices were at $63 a barrel. Just last week, that price dropped to $40 per barrel. Here in the states, Texas crude is seeing the sharpest decline in decades at $34 per barrel. With the Saudis flooding the market during a slow down, mixed with a world-wide pandemic, some experts are saying those barrel prices could go as low as $20 per.
There is no direct correlation of the oil market and the virus, but it is still affecting it immensely. Consumers could begin to see sub $2 gas prices as we head into spring.