Iran uncertainty upends seasonal gas price drop

Oil comes down amid apparent cooling-off

Chris Miller
January 10, 2020 - 10:50 am
Supertanker

Pool photo/Getty Images

Gasoline prices usually drop in the winter, but with the uncertainty in the Persian Gulf region, what can we expect this winter? 

Just when we should be having low prices at the gas pump, conflict erupts in the Persian Gulf region. Will gas prices be coming down if this apparent deescalation of the situation with Iran holds? It's really hard to say, says AAA spokesman Don Redman. 

"I think what they can expect in the next three weeks is to be ready for different changes in gasoline prices depending on the news of the day," said Redman. If the news is good, or at least uneventful, prices should hold steady and maybe even fall a little.

At $2.316 in New Orleans today, the average price for 87 octane is about half-a-penny lower than yesterday, and oil has dropped to below $60 a barrel.

But, said Redman, if the news turns bad, "we could potentially, depending on the events in the Middle East,  we could be seeing prices of about $2.50 a gallon."

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