STATEWIDE–Gas prices appear to be trending downward for the near future, says GasBuddy.
“With oil’s recent fall and the jury out on a new Covid variant, Omicron, we could be in store for lower prices based on many countries turning back to travel restrictions, limiting oil demand and potentially accelerating the drop in gas prices,” said Patrick De Haan, head of petroleum analysis for GasBuddy.
If the drop in gas prices appears to be slow in your area, DeHaan urges you to be patient.
“For example, gas prices have only fallen three cents per gallon in Indianapolis in the last week, but I do think that should pick up momentum this week. Friday’s big plummet was not passed along to stations yet, so stations should be getting those lower prices later today. It was also Thanksgiving week where stations were more reluctant to lower their prices with so many motorists on the roads,” said DeHaan.
With uncertainty surrounding the Omicron variant, DeHaan says it remains “nearly impossible” to predict where oil and gas prices will head.
“It will push prices either higher or lower depending on what research shows about the variant. We could see a bit of turbulence in oil markets that could push prices up temporarily if the news is good or down temporarily if the news is bad until all of this shakes out,” said DeHaan.
OPEC has delayed its meetings on future oil production to await more market movements and information on Omicron.
“Those meetings will now be Wednesday and Thursday. They want to see how the variant will affect demand and prices. I would look for a decision likely on Thursday,” said DeHaan.
LISTEN: Full Interview with Patrick DeHaan