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Gas prices could drop as oil prices plunge over OPEC, coronavirus fear

Gasoline could fall below $2 a gallon in the coming weeks, driven by oil prices that are plunging after major producers failed to agree to a plan to prop up crude prices this weekend and by fears of declining energy demand due to economic disruptsion from the coronavirus.

The national average price of gas was $2.38 on Monday, according to AAA. That was down 6 cents from a month ago at a time when gas prices are usually increasing in the lead-up to the summer travel season.

Gasoline is refined from crude oil.  Driving the commodity downward was the fact that the Organization of the Petroleum Exporting Countries and Russia could not come up with a plan to hold up crude prices this weekend.

“We are likely heading into an oil price war,” DNB Markets senior oil analyst Helge André Martinsen wrote Monday in a research note.

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