Gas prices drop a dime in a month

Crude demand down, more drops may be in future

Chris Miller
August 08, 2019 - 12:06 pm

Gasoline prices may have hit their summer peak already, and are now sliding again. 

Demand for crude oil has fallen, says AAA analyst Don Redman. So why is demand down all of a sudden?

"The market is concerned about global economic concerns, and we've seen the price of crude drop about two dollars a barrel," said Redman. "Those who are investing in energy products are looking at a slowdown in growth in Europe as well as in China, and they're concerned about what the future will bring in terms of demand for petroleum."

While kids are just now going back to school in much of southeastern Louisiana, Redman says the effects of that drop in demand usually aren't experienced until later in the month.

"Mid to late August, into September, that's when we'll start really seeing some of that demand taper off," said Redman.

But for now, he says it's commodities investors backing out of crude that's causing the drop.

"With the global price for crude coming down, that's certainly going to impact the prices at the pump," he said.

Gas today costs on average around $2.26 a gallon in metro New Orleans, down a dime in the last month, with some stations nearing the two dollars per gallon mark.

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