Experts predict gas prices will go below $3 a gallon again
Alabama’s gas price average is $3.44 per gallon as of October 14. That is up 13 cents from the week before, but experts with AAA say those prices may start falling again soon.
Last week, OPEC announced it was cutting oil production overseas by two million barrels a day starting November 1 and consumers immediately saw gas prices go up. Clay Ingram with AAA said that was premature. Now, multiple oil refineries are going back into production, which means gas could be going back down.
Ingram said many gas stations responded to the OPEC news by immediately raising prices, but he said they didn’t need to just yet. Ingram said there’s still time before November to try and offset the impact of losing two million barrels a day.
“Having these refineries come online will certainly help a little bit,” Ingram said. “How much is hard to say. It kind of depends on what our demand does over the next few weeks. It also depends on if any other oil producing countries want to bump up their production a little bit. I know here in the U.S. they are trying to bump up production as well.”
Ingram said right now, the U.S. is at the highest level of production it’s ever had, so he is not sure exactly how much more production will be increased here.
Ingram said normally during the fall, gas demand goes down, but he said right now, gas demand is unusually spiking and that is playing into the high cost at the pump.
But, Ingram said he does believe gas prices will eventually drop below three dollars again, especially as electric cars gain more popularity.
“They are going to help soften the demand globally for crude and gasoline,” Ingram said. “That will help drop prices overtime. If we get this Russia Ukraine situation resolved, where Russia can start selling it’s crude oil to other countries again, that will help a good bit as well.”
Ingram said prices will decrease at a much lower speed than they increase, so this could take time.
