Gas price drop likely to continue, but experts warn of oil demand increases

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Gas prices have been falling over the last few weeks, but experts are issuing a word of caution.

“Every state has again seen average gasoline prices drop in the last week, and it remains very possible the national average could fall under $3 per gallon by Christmas. There has also been a drop in diesel prices, which this week will fall back under $5 per gallon, and could soon thereafter fall to their lowest level since March. However, despite all the good news about fuel prices, there may be some concerns coming as the price cap on Russian oil kicks in. Retaliation is possible, and while OPEC+ upheld production cuts from last month, they could always cut more production. For now, however, we’ll likely see another week of declines at the pump in nearly all areas,” said Patrick DeHaan, head of petroleum analysis for GasBuddy.

DeHaan also says that when China starts easing its COVID restrictions, oil demand will go up and so will prices.

Oil industry analyst Trilby Lundberg, the publisher of the Lundberg Survey, also weighed in on why prices have seen a recent drop.

“It was American refiners upping their output tremendously and slashing their own product margins in order to make sure there was no shortage for home heating oil,” said Lundberg.

The average price for gas across Indiana is $3.39 per gallon, says GasBuddy. That is down two cents from where it was Monday. The cheapest gas in the state is in Evansville where it is $2.79. The most expensive is in Bloomington at $3.99.

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