- Gas prices are likely to fall under the $2 mark in the upcoming weeks.
- This comes after an abysmal open to the stock market this past Monday, due to an oil price war and coronavirus fears.
- Stocks are now surging once more as they recover from the rough start.
While the oil price war caused a major drop in the U.S. stocks this week, it could push down gas prices quite a bit, which makes all of us happy. In the upcoming weeks, we could see a drop in gas prices below $2. The head of petroleum analyst at GasBuddy weighs into this. He claims that gas prices could shoot down below the $2 mark should coronavirus fears continue and the global oil supply doesn’t shrink.
This comes shortly after major oil-producing nations would fail over the weekend to agree to a plan to boost crude oil prices. Currently, AAA finds that the national average price of gas is currently at $2.38.
Gas prices are likely to fall under the $2 mark
During a meeting in Vienna last Friday, Russia refused to go along with OPEC’s proposal to rescue the coronavirus-battered oil market by cutting production. As a result, Saudi Arabia launched a price war against Russia, which caused stocks both in the U.S. and in other countries to suffer. Following the abysmal Monday opening, stocks are surging once more following their worst day since the 2008 financial crisis.
This is not the first time such a thing has happened. Back in 2015, parts of the U.S. saw a drop below $2 in gas, but this was due to the fact that they were swimming in oil. Oil production via the U.S. and Saudi Arabia was plentiful and many news networks were reporting on the fall in gas prices. Check out the news coverage from that time period.