INDIANAPOLIS — While gas is certainly not cheap, market experts say the price increases are being minimalized amid fears of global economic recession.
AAA reports that those fears weighed down oil market expectations, leading to a major drop in the price of crude oil. Gas Buddy echos that sentiment, saying the fears continue to mount as well as worse than expected jobs data.
Gas Buddy’s analysis indicates the data is pushing the economy to the brink of a more prolonged slowdown, pushing oil lower.
Gas Buddy reports oil prices have been under selling pressure after OPEC+’s decision to trip oil production quotas.
OPEC’s announced that it would cut production by about 2 million barrels daily starting in November. That announcement has come under fire from a bipartisan group of senators. The White House is also eyeing what it can do about the decision.
AAA reports that lower demand amid increasing supply and fluctuating oil prices have contributed to the national gas price average moving downward. If this trend continues alongside a decrease in oil prices, people may see the impact at the pump.
GasBuddy’s data shows prices fell 5.4 cents from a week ago, while diesel prices have increased.
“After a sharp rise in the national average over the last few weeks, we’ve seen an abrupt, yet expected decline as refinery issues have eased in the West and Great Lakes, overpowering some increases elsewhere. Though at the same time, diesel prices have soared,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
The national average pump price for a gallon of gas is $3.88. This is 20 cents higher than a month ago and 56 cents more than a year ago. Indiana’s average gas price is $4.055.