(UnitedVoice.com) – Gas prices continue to fall as the country struggles to contain the spread of the deadly coronavirus. While many Americans are grateful for lower gas prices, the opportunity to save at the gas pump could not have come at a worse time.
According to the gas price site GasBuddy.com., the average price across the United States is currently at $2.19. Their analysts predict some gas stations even seeing price drops as low as 99 cents.
AAA is currently reporting the national average of gas prices has declined to $2.17 with 19 states being under $2.00 per gallon. This is the lowest it’s been since December 2016.
Coupled with the coronavirus pandemic, the oil wars between Russia and Saudi Arabia has caused a downward spiral in the financial markets, causing much concern in the US energy industry. The last time Saudi Arabia lowered the price of oil, it caused massive job losses in the energy sector.
Earlier this year, Saudi Arabia announced it would raise production to over 10 billion barrels of oil per day after it was reported that OPEC’s deal with Russia collapsed.
The oil-price war between Saudi Arabia and Russia is set to unleash the biggest flood of crude ever seen, perhaps more than the world can even store https://t.co/aXnD1gYzLy
— Bloomberg (@business) March 14, 2020
The Trump administration says it may threaten Russia with sanctions and apply diplomatic pressure on Saudi Arabia to end the oil price wars between both countries.
Global analysts in the gas and oil industry worry there will be even less demand around the world as more people are forced to stay home. They also worry too much production of oil could flood the markets, making matters worse in the long run.
While lower gas prices are great for consumers in the short-run, the long term consequences remain to be seen. We’ll keep an eye on it for you.
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