Storms heading for Gulf Coast, gas prices to soar?
With two tropical storms aimed at America’s gulf coast, residents begin hitting the pumps in preparation. Typically, the increase in demand would cause gas prices to soar. However, they are only up one cent from the week prior, sitting at $2.19 a gallon for regular according to AAA.
Researchers say, we may have the coronavirus to thank for the steady costs. With a record U.S. oil production and a sharp drop in demand for fuel during the pandemic, the U.S. has a record excess of supply.
Chief Oil Analyst for the Oil Price Information Service Tom Kloza said, “In terms of crude oil, the U.S. has never been in better shape.”
Kloza also said past storms, like Hurricane Harvey, led to spikes in gas and oil prices partially because they came at times of high demand. Even with half of the off shore oil industry shuttered in anticipation of the storms, future oil and gas markets are not showing much movement, according to government figures.