Analyst expects new COVID variant will drive down gas prices, create ‘turbulence’

According to GasBuddy.com’s daily survey of 1,826 stations in Arkansas, the average price for a...
According to GasBuddy.com’s daily survey of 1,826 stations in Arkansas, the average price for a gallon of regular unleaded fell 2.5 cents in the last week.(AP)
Published: Nov. 29, 2021 at 11:23 AM CST
Email This Link
Share on Pinterest
Share on LinkedIn

JONESBORO, Ark. (KAIT) - With the advent of a new COVID-19 variant, bringing with it travel restrictions in certain countries, one analyst says American motorists should expect to see gas prices fall.

According to GasBuddy.com’s daily survey of 1,826 stations in Arkansas, the average price for a gallon of regular unleaded fell 2.5 cents in the last week.

The state average now stands at $3/gallon. That is 7.2 cents less than motorists paid a month ago but $1.18/gallon higher than last year.

The national average fell 3.4 cents in the last week to $3.37 a gallon.

Patrick De Haan, head of petroleum analysis for GasBuddy, said Monday that prices were “slowly picking up momentum.”

“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,” he said.

De Haan also noted that OPEC has delayed its meetings while it awaits more information on Omicron.

“Americans can expect the new variant to push gas prices even lower,” he said. “Beyond the next few weeks, it remains nearly impossible to predict where oil and gas prices will head, though turbulence is guaranteed.”

Copyright 2021 KAIT. All rights reserved.