OIL EXPERT: OPEC Deal Likely Won't Impact Gas Prices, Which Remain Low Due to COVID-19

STATEWIDE– The coronavirus pandemic continues to keep gas prices low, despite a recent deal from OPEC to cut oil production.

“Good news for consumers- contrary to popular belief, an OPEC deal over the weekend to cut oil production will actually not have a near-term impact on gasoline prices- not even one bit,” said Patrick DeHaan, head of petroleum analysis for GasBuddy.

DeHaan says this is also encouraging for the oil industry.

“The aim is exactly that- keep production online- which will keep prices affordable going forward, instead of ultra-low prices shutting in oil production, leading to a slingshot in gas prices years from now. Going back to gas prices, I expect prices to continue moderating for now, as gasoline demand appears to remain near 50-year lows,” says DeHaan.

Gas prices will continue to go down in Indiana. DeHaan says there is a 60-65% chance some stations in Indiana will see gas at less than $1 per gallon.

“It’s certainly in the cards (for that to happen), it’s just whether or not stations will pass along those lower prices. That’s what is more uncertain at this point,” says DeHaan.

There are stations in Indianapolis and Rushville selling it for $1.10 and less. GasBuddy says the statewide average is $1.53 (down 13 cents from last Monday) while the average in Indianapolis is $1.50 (down seven cents from last Monday).

“Gas prices should either stabilize or continue their very slow decline over the next week as demand appears to remain near 50-year lows,” says DeHaan.