As concern over a worldwide recession grows, gas demand declines

Indianapolis, Indiana — Gas is hardly cheap, but according to market analysts, price rises are being kept to a minimum because of concerns about a global economic downturn.

According to AAA, these worries lowered oil market expectations and caused the price of crude oil to sharply decline. Gas Buddy echoes this sentiment, stating that there are growing concerns as well as poorer-than-anticipated employment statistics.

According to Gas Buddy’s research, the data are pushing the economy to the verge of a more significant slowdown, which is driving down oil prices.

Oil prices have been under selling pressure, according to Gas Buddy, since OPEC+ decided to trip its oil output quotas.

Beginning in November, OPEC announced that it would reduce production by around 2 million barrels per day. An assortment of senators from both parties have criticized the announcement. The White House is also considering its options in response to the choice.

According to AAA, the declining national gas price average is a result of reduced demand despite rising supply and shifting oil prices. People might see the effect at the gas pump if this pattern persists and oil prices decline.

According to GasBuddy’s data, gas prices are down 5.4 cents from a week ago, but diesel prices are up.

“After a sharp rise in the national average over the last few weeks, we’ve seen an abrupt, yet expected decline as refinery issues have eased in the West and Great Lakes, overpowering some increases elsewhere. Though at the same time, diesel prices have soared,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

The average nationwide price at the pump for a gallon of gasoline is $3.88. This is up 56 cents from a year ago and up 20 cents from a month ago. The average gas price in Indiana is $4.055.