ATLANTA — Experts say on the heels of a widespread market sell-off, it may soon hit gas prices.
Gas prices nationally could fall below $3 a gallon, and locally, could be close to $2.50.
Economists worry that it could be a bad thing.
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Oil prices are currently down to their lowest level since 2021. But economists worry that the price drop could reflect an economic downturn
“I think it’s primarily concern over demand and concerns overall the broader economy,” said Chris Edmonds, CEO of Enerecap Partners.
Oil prices are based on a future projection of demand. If the economy slows down, discretionary travel is usually one of the first things to go.
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“Vacations, weekend trips to the lake, those types of things, really pull back and pull back quicker than we think they do, and that has a big impact on demand,” Edmonds told Channel 2’s Michael Doudna.
After an economic week that has seen the stock market lose trillions of dollars, people are now starting to wonder what is in store for their future.
“It’s hard to have a plan when you don’t know what tomorrow is going to be like. So you hold on to what you have,” Edmonds said.
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Right now, the concern is that uncertainty could turn into a recession resulting in lower gas prices but also a worse economy.
“It may be a moral victory, but it might not be an economic victory. Because the impact of uncertainty and the impact of a shrinking economy or receding economy is much more than a gallon of gas,” Edmonds said.
One other factor behind the lower oil and gas prices is supply. Last week, OPEC announced it would nearly triple the expected supply of oil.
Edmonds said that could be to potentially undercut the American oil industry.
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