Here’s a tip for consumers from a national petroleum analyst: Don’t fill your tank for a good deal; Pump prices could also drop tomorrow.
Patrick DeHaan of GasBuddy, the national consumer website, said gas prices had been leaking all month and no one had found the catch.
“Gas prices spent most of March down, the decline continuing as the coronavirus destroys world demand for oil, resulting in the lowest oil prices we have seen in 18 years, opening the path to an additional 35 to 75% per gallon will drop at most stations in the coming weeks, “he said.
Here’s what it means:
- For the fourth week in a row, national pump prices fell, this time by 12.8 cents for a national average of $ 2.08 per gallon.
- West Texas Intermediate crude oil prices bottomed out at $ 22.91 a barrel on Wednesday.
- There has been talk of reducing oil production through the Texas Railroad Commission. It hasn’t happened in over 40 years.
Here’s how it affected prices in Louisiana:
- Three stations in Shreveport, one in Baton Rouge, were selling gas for $ 1.29 a gallon on Wednesday.
- At Lafayette, Sam’s Club, 3222 Ambassador Caffery, and Costco, 201 Farm Meadow Road, were both selling a gallon of lead-free at $ 1.55 Wednesday, the city’s lowest price.
DeHaan said 99-cent gas is a possibility this year, and may be more widespread than previously thought.
David Dismukes, Executive Director and Professor at the Center for Energy Studies at LSU, said the problems are well known: the new coronavirus keeps much of the country and much of the world’s population at home and depresses demand for gasoline, while production rivals Saudi Arabia. and Russia has engaged in a premature oil war, flooding the oil market and suppressing prices.
Casinos, bars, gymnasiums, cinemas, schools and universities are closed, gatherings of more than 50 people are prohibited. Stores closed by number…
“It’s an uncertain situation right now,” said Dismukes. “You are not going to fix OPEC – they will not meet until June.”
What about the coronavirus? Well, it’s anyone’s guess.
Dismukes said energy is raging in Louisiana, including in the petrochemical industry. If he did not discern the bright spots, he saw weak signs of hope, including the president’s optimism for a faster recovery of the economy and the resulting confidence. The Congress stimulus package will be helpful.
“We have had two good days in the equity and commodity markets,” he said. “We must continue to build confidence.”
He said markets appeared to be on the up – oil prices were climbing to $ 25 a barrel later today and could recover around $ 5 a barrel. But Dismukes said the best advice for those who work is to bend over.
The federal government plans to purchase up to 77 million barrels of crude oil from largely independent American producers to crown the country …
The double whammy of the global pandemic and the glut of oil generated by the Saudis and the Russians have reduced the chances of rapid energy recovery.
“For 2020, it’s sort of done,” he said. “Stick a fork in it.”
Those in the energy industry may hope to survive the year and hope more in 2021. There is, he said, no quick fix.
“We are in a global energy economy,” he said, where protectionism, like tariffs, fails. The recovery could mean that oil and gas will have fewer stronger players.
“Don’t try to change the world, but survive the next six to eight months,” he said. He would advise those in the industry. “There is no pie in the sky.”