Analyst: COVID variant causes slight drop in gas prices

Published: Nov. 30, 2021 at 1:46 PM EST
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WATERTOWN, New York (WWNY) - Rising uncertainty around the newest COVID-19 variant appears to be driving gas prices down.

The average cost for fuel nationwide dropped about 3 cents since last Tuesday. In New York, it went down less than a cent.

That’s from Patrick De Haan with GasBuddy who says the omicron COVID variant is the cause. He says prices hinge on how governments around the world react, like issuing travel restrictions and lockdowns.

“If nothing changes and we get no news about the omicron variant, I would expect that gas prices could decline in excess of 20 cents a gallon over the next couple of weeks,” said De Haan, head of petroleum analysis, GasBuddy. “If it’s good news and the variant is not as bad as feared, oil prices will likely go up at that point in the future. If the variant is worse than expected, or if vaccines are less effective, oil prices could drop.”

He says prices could quickly go back up if there are positive developments around the variant.

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