Economy

Merry Christmas From OPEC, A Gallon Of Gas Could Drop Below $2

Holiday travelers are getting a nice gift this year with gasoline prices well below $3 a gallon in most states. Some drivers could pay even less than $2 this week after OPEC’s decision to stand still ignited a big selloff in oil.

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GasBuddy.com is projecting that by the end of the week a gas station in Texas or South Carolina will be the first in the U.S. to drop its price for regular gas to $1.99 a gallon.

Photo credit: REUTERS

Photo credit: REUTERS

“Even a week ago, I would have said no way,” Patrick DeHaan, a senior petroleum analyst at GasBuddy, said when asked whether $2 gas comes as a surprise. “What a gift from OPEC. It’s the perfect time of year for this to happen.”

Last week, the Organization of the Petroleum Exporting Countries said its members will keep oil production at current levels. Many industry experts expected the cartel to slash production amid a deep slide in oil prices, which hit five-year lows following the announcement.

Oil has rapidly retreated over the last five months, as traders have grown increasingly worried that global supplies are exceeding demand. All eyes are on surging production in the U.S., where drillers are capitalizing on hard-to-reach shale oil.

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