Expert Says Freefall Likely To Continue For Oil Prices; Gas To Follow

Chris Sommer
February 28, 2020 - 9:53 am
Oil

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The coronavirus outbreak led to a collapse this week in oil prices, and a top expert cautions the worst may still be ahead.

GasBuddy.com Head of Petroleum Analysis Patrick DeHaan said the price of West Texas Intermediate Crude was down 16% for the week going into Friday's session.  He said, "Last week, the price of oil rose $3 from 49 to 53, before then collapsing.  And that really started the tailspin."

At mid-morning Friday, oil was down another 5%, trading at $44.70.

DeHaan said with the uncertainty over coronavirus, it's impossible to tell what will happen next.  He said, "If the worst-case scenario happens here in the U.S., I could foresee oil prices dropping another ten, maybe even $20 a barrel."

Meanwhile, DeHaan said gasoline prices are still catching up to what's happened with oil.  As retailers sell off the last of their inventory purchased at recent higher prices, he believes the decline in gas prices will begin to accelerate this weekend, and into early next week.  DeHaan said the average price for regular unleaded in Dallas-Fort Worth should quickly slip back below $2 a gallon in a matter of days.