Does negative oil price impact gas prices?

What do oil prices mean for gas prices?

BIRMINGHAM, Ala. (WBRC) - As attention grabbing as negative oil prices sound, experts at GasBuddy.com say it doesn’t necessarily mean a lot of impact at the pump.

Gas prices have been dropping over the past few weeks because there’s less demand for it right now. People are staying home because of the coronavirus situation, so less people are filling up.

Patrick De Haan with GasBuddy says refineries have already slowed down production of gas so a major drop in oil prices doesn't necessarily translate to a plummet at the pump.

However, we could still see prices drop over the next week or two related to people staying home.

“I think there’s more room to go down maybe as much as 25 to 40 cents a gallon but having said that I don’t know that it will go down a whole lot more to match that simply because station’s have been a little bit fearful of lowering prices given the fact that they’ve seen a 50 to 70% drop in the amount of gasoline they’ve sold,” De Haan said.

The oil price plummeting could have a big impact on employees in that industry. Experts say we could see layoffs because of it.

Copyright 2020 WBRC. All rights reserved.