General Question

elbanditoroso's avatar

Saudi Arabia is going to let crude oil prices drop in order to try and get more market share across the world. How long will it be before US gas prices are under $1.50?

Asked by elbanditoroso (29594points) March 9th, 2020

Gas was $1.89 for unleaded here in Atlanta this morning. If the Saudis are really starting an oil war, when will prices hit $1.50?

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14 Answers

zenvelo's avatar

Probably by Easter.

I saw gas below $3 a gallon in Oakland CA yesterday. Amazing!

chyna's avatar

@zenvelo That’s pretty high though. I paid 2.33 a gallon yesterday.

stanleybmanly's avatar

The drop will come quickly but a buck fifty a gallon would be catastrophic for the industry here and in places like Russia would threaten the outright collapse of countries themselves.

JLeslie's avatar

I just filled my gas tank 2 days ago and was so excited it was $2.04 a gallon.

I think gas prices at the pump will drop fast, what always lags way behind (and shouldn’t) is food prices, which should drop too since transportation is cheaper.

I’ll guess $1.50 by Match 29th. Total guess. Trump will try to sell it to the masses that gas prices are low under his leadership.

janbb's avatar

@chyna Gas prices are usually much higher in California than by me. It probably has to do with the state gasoline tax.

zenvelo's avatar

@stanleybmanly The geopolitical effect of low oil prices is fraught for many regimes.

Twenty years ago I read that Iran funds its government through handouts to the population which require a $50 a barrel minimum. Below that level for very long, and Iran cannot feed its population and runs the risk of food riots.

And the whole fracking industry in the US, which has been the cause of much of our “oil independence” for the last ten years cannot sustain at under $50 per barrel.

stanleybmanly's avatar

So the Saudis can destroy both Russia and Iran, as well as disrupt TRUMP’s economy and topple the stock market just in time for the election.

elbanditoroso's avatar

@stanleybmanly I have no problem putting pressure on either Russia or Iran.

Tropical_Willie's avatar

There are gas stations selling Regular at $1.75 in Wake Forest, North Carolina.

You can come back and it will give an updated price.

zenvelo's avatar

@stanleybmanly It also deflects while the Crown Prince consolidates power and detains a number of members of the Royal Family

SEKA's avatar

Part of that will depend on how greedy the oil companies remain. As of yesterday, we were down to $1.90. I haven’t been out yet today to see if it’s gone any lower

Caravanfan's avatar

In California, never. Too much gas tax.

Tropical_Willie's avatar

@Caravanfan I’ll bet $2.25 would feel good. ;>) Or $2.10 !!!

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