CIRCLEVILLE – Gas prices are expected to drop to under two dollars a gallon this week according to gas buddy.com. This has some to do with the coronavirus outbreak, according to national security consultant for CBS Col. Jeff McCausland.
With China being a heavy importer of oil its just as easy as supply and demand. China has reported that they will cut oil imports by 1 million barrels per day. That means there will be a large increase in supply for the rest of the world. And as the supply grows more than the demand, the price goes down.
According to Associated Press China’s outbreak has caused thousands 25,000 flights to and within China to be canceled, Hyundai motors in South Korea is suspending productions because of disruptions in supply because of the outbreak.
Local Circleville area gas is at a low of 2.18 at the BP at 2512 US 22 on February 9, 2020 dropping another ten cents since last week. Over the last four weeks we have seen a decline from 2.78 on January 8, 2020.
This isn’t the lowest in Ohio though with gas at 1.66 per gallon at 101 West High Street in Oxford Ohio just outside Cincinnati according to gasbuddy.com.
“Hit the road, America! It will be another year where gasoline prices will be relatively affordable- but don’t close your eyes- the price variation between stations and states will approach record levels. Never has there been a bigger opportunity to spend less, or to spend more, if you aren’t checking prices before filling up,” said Patrick De Haan, head of petroleum analysis. “In addition, motorists should be feel some comfort that for a sixth straight year, gasoline prices will start with a “2” in most areas amidst a robust economy, with thanks to U.S. oil producers for matching our increasing appetite for affordable energy, which also helps to act as insulation against unpredictable events including production cuts from other nations to keep oil prices from spiraling out of control.”
Whats the gas price in your area?