Gas prices are expected to go down in the coming days. That’s due, in part, to OPEC coming to an agreement on oil production over the weekend and a rise in coronavirus cases throughout the country.
“OPEC’s plan is to raise oil production by 400,000 bpd each month until 2022, at which time OPEC’s oil production will be back at pre-COVID levels,” said Patrick DeHaan, head of petroleum analysis for GasBuddy. It’s a positive development in light of U.S. gasoline demand which last week rose nearly 2%, which should act as a loose ceiling on the price of oil, and could mean we’re even closer to seeing a peak in the national average if we haven’t already.”
DeHaan said an increase in coronavirus infections is “spooking the market” which caused a massive sell-off on Wall Street Monday.
“The threat that restrictions could surface is scaring some people. Keep in mind, California is already going backward telling people to mask up inside even if they’ve been vaccinated. Oil prices have fallen precipitously on the fear of this Delta variant. That pushed wholesale gas prices across Indianapolis down by an average of 13.5 cents per gallon yesterday (Monday) alone,” said DeHaan.
So if you need to fill up your gas tank soon, DeHaan said you should not be in any rush.
“If you don’t need gas, don’t get it. Prices in Indianapolis will be coming down. Even if you’re on E (empty), only buy a few gallons. Prices will be coming down over the next one to two weeks,” said DeHaan. “You may see some stations going down five cents all it once and that may be for several days straight, so don’t be in any hurry.”
That decrease is also expected to drop at stations all across Indiana. As of Tuesday afternoon, a gas station in Yorktown is selling gas for the cheapest price in the state at $2.75.
So far, people are still traveling and demand for gas has been on the rise even with coronavirus cases increasing.
“For now, demand has been unaffected. In fact last week, demand rose about 2%. There has not really been a spillover to gasoline demand just yet, but that could be coming,” said DeHaan. “That is definitely something to watch.”