The Atlanta Journal-Constitution
Gas prices drop
As prices fall, OPEC unveils tentative plan to cut oil production.
Gas prices in Atlanta dropped this week to below $2 a gallon as the global coronavirus outbreak saps demand for energy, sending world prices tumbling.
Weeks of factory shutdowns in China, along with virtual lockdowns of large regions of the country, were enough to dramatically slash the world’s demand for oil and gasoline,
Gas prices in Atlanta dropped this week to below $2 a gallon as a global coronavirus outbreak saps demand for energy, sending world prices tumbling.
Weeks of factory shutdowns in China, along with virtual lockdowns of much of the country, were enough to dramatically slash the world’s demand for oil and gasoline.
Though the Chinese government is reporting that the spread of the virus has dramatically slowed, the disease is now affecting other countries and their economies.
“How low prices go and how long they are depressed — everything is about the coronavirus,” said Patrick DeHaan, senior petroleum analyst for Gas Buddy, which tracks gas prices nationally. “How far we go down depends on how much worse it gets.”
As usual, there are drastic price differences in metro Atlanta. Tied for thelowest prices werea Costco and a Sam’s Club in Buford and a Marathon in Stockbridge — all charging $1.95 a gallon. In contrast, a Shell in Acworth near I-75 was charging $3.04 a gallon, according to GasBuddy.
The average price for metro Atlanta was $2.21 a gallon Thursday. The region’s average has not slipped below $2 since early 2016, according to Gas Buddy.
Though gas prices are affected by many factors, the biggest component is the price of its major ingredient: oil. The going rate for American refinery oil has fallen from more than $62 a barrel in early January to less than $45 a barrel.
In an effort to keep prices from dropping too far, the Organization of Petroleum Exporting Countries announced Thursday a tentative plan to cut production.
OPEC, which accounts for a third of global production, has often had trouble getting its members to comply with deals, since they are giving up revenue. But even if they do close some spigots, the impact on the balance of supply and demand — and on prices — may not trickle through to pumps for months.