STATEWIDE–Gas prices are expected to decline for at least the next week.
“The average is going down slow enough, which makes me believe that will happen. Don’t pay anything over $3 per gallon for gas. Prices will continue to come down for the rest of this week and potentially into early next week until we see the risk of a price cycle,” said Patrick DeHaan, head of petroleum analysis for GasBuddy.
DeHaan believes the uncertainty around the omicron variant of coronavirus is causing a lot of anxiety. Some countries where the omicron variant is spreading have reinstated lockdowns, which is limiting oil demand.
“It looks like omicron is limiting oil demand just enough to keep oil prices from rallying back up to those previous highs. It doesn’t look like there’s been a big jump in oil and I think things are settling down for now. If anything, the omicron variant could be buying us a time of lower prices that may stick around,” said DeHaan.
Last week, U.S. gasoline demand fell to the lowest level since October.
“OPEC is still planning to boost oil production in January. With their forecast out Monday, OPEC says the omicron variant will probably not do much to derail demand. From that perspective, OPEC has no reason to cut oil production back from the 400,000 barrels that is scheduled to hit January 1,” said DeHaan.
GasBuddy says the statewide average for gas is $3.13, but there are many stations across Indiana selling it for less than $2.90.
LISTEN: Full Interview with Patrick DeHaan