Gas expert discusses impacts of omicron variant
BURLINGTON, Vt. (WCAX) - As health experts study the latest variant of the coronavirus, oil industry leaders are watching gas prices.
Omicron has caused several countries to implement travel restrictions and that will affect oil.
Patrick DeHaan is the head of petroleum analysis at GasBuddy.
He says after months of increasing costs, gas prices are finally starting to drop and that will help pave the way for further decreases to come.
But things are constantly changing and one thing can set off a chain reaction.
He says it’s challenging to keep up with the pandemic, new variants and government restrictions.
”It’s a very turbulent time and oil responding to different headlines and responding to different changes in consumer behavior. Responding to increases or decreases in oil production. It’s really made it a very challenging time to accurately predict oil and gas prices beyond a few weeks,” said DeHaan.
And with governments switching to emergency mode for the new variant, that could cause prices to dip even further.
”As those motorists that would be out driving are staying closer to home or may be required to stay closer to home, so it does make a great big impact in oil prices and as a result of that new variant spreading, oil prices plummeted. We’re now about $20 lower than the peak of oil prices we saw in November,” said DeHaan.
Good news about omicron, like if it’s not as fatal or infectious, could cause gas prices to go back up.
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