Oil prices drop after global markets crash

Posted at 4:52 AM, Mar 10, 2020
and last updated 2020-03-10 06:52:20-04

Global markets are starting to readjust after Monday was declared Wall Street's worst since the financial crash of 2008. This comes as the coronavirus outbreak continues to have a major impact in western Europe.

While the Dow Jones took a sharp turn downward, oil prices also took a nosedive. Idaho AAA says crude oil dropped below 30 dollars a barrel Sunday, for the first in almost four years. People are traveling less, and using less fuel, because of the spread of the coronavirus.

The OPEC oil producing companies also cannot seem to agree on how to best cut production. Some refineries are going offline for their annual summer maintenance, and more will be switching over to summer-blend fuels. That means gas prices could fluctuate for the next few months.

"We still don't have the refinery maintenance we're expecting, we still don't have the summer blend fuel we're expecting," said Matthew Conde, AAA spokesperson. "Those things are putting upward pressure, the crude oil situations go downward, so there is kind of this teeter-totter effect, Where will it land? It may be a bumpy ride for awhile. "

Right now, the average price for a gallon of regular fuel here in Idaho is $2.56, about 20 cents more than a year ago.