The price of oil has dropped heavily recently and that is a great thing for us drivers
Fox Business reported that oil prices plunged to their lowest level since June 13 – down five percent at times during the trading session. As of Wednesday afternoon, West Texas Intermediate Crude was trading at $51.17 per barrel – down more than 4.5 percent, while Brent Crude was trading around $56.35 per barrel.
Brent crude is falling into bear market territory, nearly 20 percent off its April peak.
And while inventories might have a short-term impact, an ongoing trade war between the U.S. and China is likely to continue to weigh on prices.
Tensions ramped up over the past week as President Trump communicated his intent to impose 10 percent tariffs on the remaining $300 billion worth of goods coming into the U.S. from China. In response, China allowed the value of the yuan to drop to a more than 10-year low against the U.S. dollar – after which the U.S. labeled China a “currency manipulator.”
“Demand [for gasoline] is likely to suffer not only because [of] the trade rift, but as summer closes, demand will drop,” Patrick DeHaan, a senior petroleum analyst as GasBuddy.com, told FOX Business.
That means lower gas prices are likely on their way for drivers.
According to DeHaan, you can expect to see gas for under $2 per gallon again by Thanksgiving time. That’s definitely something to be thankful about on the holiday.
The areas that can expect to see the lowest prices are some Southern States such as Alabama, Mississippi, Texas, South Carolina, and Louisiana.
Some areas in the Heartland can expect sub-$2 gas as well such as Missouri, Tennessee, and Arkansas.
That’s not to say that your state won’t experience under $2 gas. I believe there will be other states as well, especially if Crude continues to drop even more than it already has.