If you've gone to fill up your vehicle lately, you may have noticed that gas prices have been on a downward trend the last few weeks and the price could fall even lower.
According to an analysis from GasBuddy.com, thanks to lower demand and a high supply of crude oil on the market, the national average price for a gallon of gas could soon hit $1.99, with some markets around the country eventually posting prices as low as .99 cents.
China, which is the world's second-largest consumer of oil behind the United States, saw its demand plummet amid the height of the coronavirus outbreak there. Due to the lack of demand, two of the biggest oil-producing countries in the world, Saudi Arabia and Russia, met to discuss plans to cut back on oil production in hopes of stabilizing prices.
However, because the two countries couldn't come to an agreement, a price war broke out, leading to the biggest-single-day drop in oil prices since 1991 on March 9.
With more than 10,000 cases and 152 people having died from the novel coronavirus, demand could remain low for the foreseeable future. Without action from Russia and Saudi Arabia, these low prices could become the new normal for many gas stations around the United States.
"What could reverse the drop in oil prices lies with Saudi and Russia," the report states. "If they meet an agreement to cut back oil production — balancing global oil supply to coronavirus-reduced demand — we could see gas prices start level out but nonetheless, gas prices will be at a new norm. We will be seeing more $1 versus $2 on the street corners."