Dropping global oil prices could mean deals at Whatcom gas stations in coming weeks
While the stock market wasn’t happy about the big drop in oil prices, local drivers could see good deals at the pump in the coming weeks.
On Monday, March 9, oil prices were down about 20% after Saudi Arabia decided to increase supply in the global market in response to a price war with Russia. Throughout the morning the Brent Crude was at around $36 a barrel, down from about $69 a barrel in early January. Stock markets around the world plunged on that news along with concerns about the coronavirus, also known as COVID-19.
This plunge in oil prices should start impacting local gas stations this week. In Whatcom County the average price for a gallon of gas was $3.05 on Monday, down a penny from Sunday according to AAA Washington . This is traditionally the time of year when gas prices go up with increased demand, refineries doing maintenance work and switching to the summer blend. The downward trend doesn’t usually start until after Memorial Day weekend.
With what’s happening in the global market, along with an expected decease in travel, gas prices have nowhere to go but down like a rock, said Patrick DeHaan, head of petroleum analysis for GasBuddy, in his weekly gas report.
“For motorists, I urge them to be in absolutely no hurry to fill up as gas prices will drop in nearly every nook and cranny of the country,” DeHaan said in the report.
Reached by email, GasBuddy petroleum analyst Allison Mac said it’s likely average prices will drop 5-10 cents a gallon this week. If the global oil markets continue the price war, Bellingham’s average price could fall from the current $3.05 a gallon to around $2.50 a gallon by the end of March.
According to GasBuddy, the national average for a gallon of gas on Monday was $2.36, down nearly 13 cents from a year ago.
This story was originally published March 9, 2020 at 11:37 AM.
