Coronavirus could drive gas prices below $2 a gallon
Gasoline could fall below $2 a gallon in the coming weeks, driven by oil prices that are plunging after major producers failed to agree to a plan to prop up crude prices this weekend and by fears of declining energy demand due to economic disruption from the coronavirus.
Crude had already fallen sharply in recent weeks as investors feared a massive surplus of oil and declining demand over the global economic effects of the outbreak. He said the national average price of gas could fall below $2 in the coming weeks if coronavirus fears continue and the global surplus of oil doesn't contract.
In addition, if drivers drive less and travelers fly less due to fears stemming from the outbreak, that leads to less oil demand. And less demand means lower prices. In a worst-case scenario, the world could be facing a"much worse" surplus in oil than it experienced in 2015 and 2016, according to JBC Energy. In early 2016, gas prices averaged less than $2 per gallon nationwide for about two months, according to the EIA.
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