The coronavirus (COVID-19) is having an impact on fuel prices across the globe.
According to AAA, the price of crude oil is at its lowest since early January 2019 and prices have been trending downward for the last 10 days as cases of the coronavirus increase around the world.
"Until it appears that the international public health threat from the virus decreases and China’s industrial sector recovers from the impact of the virus on production, crude prices are likely to continue facing downward pressure," a spokesperson for AAA wrote in a press release.
Crude oil prices have a ripple effect, although not always immediately, on prices at the pump. AAA reports that gas prices are down across the country, as is expected for this time of year. They are also crediting a healthy stock level for current low gas prices.
The Connecticut Energy Marketers Association reviews wholesale prices for fuel in the state before it hits the streets. They say they have already seen the impact of lower crude oil prices and expect to notice a more noticeable dip in prices at the pump in the coming weeks.
The US Energy Information Administration conducts a short-term energy outlook every year. The EIA is forecasting that the global liquid fuels demand will average 101.7 million barrels per day in 2020, 378,000 b/d less than was originally forecasted, according to an article from the EIA.
They attribute the change to various factors including a warmer-than-expected winter and economic effects of the coronavirus outbreak. According to the article, the EIA predicts the impacts of the demand reduction will stay through December.