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Low gas prices could lead to economic trouble for The United States

WICHITA, Kan.– It’s been nice only having to spend about 20, 25 dollars to fill up your car at the gas station but it may be doing more harm to the economy than good.

Patrick De Haan, the head of petroleum analysis for GasBuddy said, “We’re kind of stuck watching these prices fall from our living room windows.”

De Haan said the price for gas is at 15 to 20 year lows right now, all because of COVID-19.
“At the root of this, if there was not coronavirus, there’d be no reduction in demand and we wouldn’t be in this predicament,” said De Haan. “Prices have continued to tumble across all 50 states. A lot of it is because most Americans are under shelter in place orders.”

It’s a welcomed sight for many people who haven’t seen gas prices this low in at least a decade but petroleum analysts say saving money at the pump now, could cost your wallet more money down the road.

“It’s nice to see low prices but the collateral damage is too significant,” said De Haan. “And I think most Americans wouldn’t realize that if prices remain this low, it’s going to mean that prices will eventually slingshot to even higher levels down the road.”

And it’s hurting those in the oil business which employs thousand of Kansans.

According to AAA, Kansas has the 11th cheapest gas in the country averaging $1.72 for the state. Wichita averages the cheapest gas out of all of the state’s urban settings at $1.61 a gallon.

President Donald Trump tweeted Thursday morning that he is working with Saudi Arabia and Russia to keep them from low balling oil prices and driving american oil producers out of business.

“Now this is essentially helping out tens of thousands of workers in the oil and gas sectors,” said De Haan.
On Wednesday, the first U.S. oil company declared bankruptcy, Whiting Petroleum. De Haan said if the President doesn’t step in, it could be detrimental to the American economy.

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