Is the gas price drop coming to an end in New Jersey?
It’s been happening every day for more than three months in New Jersey.
Gas prices continued to drop over the weekend, and many Garden State motorists are wondering how long this trend can continue.
Tom Kloza, the global head of energy analysis for the Oil Price Information Service, said demand is still going down.
“You’re going to see prices drop into next week, that’s pretty much certain. The market has been kind of plastered here in the last couple of days. I think we go another 5 or 10 cents lower.”
He said after that, “the fourth quarter could be very, very choppy.”
“This is a drop of epic proportions and I’m among those who quite frankly didn’t think it would last this long,” he said.
Gas prices have been dropping for 97 days in a row.
“That’s almost a record. The record was in 2014 and 15 when OPEC really lost their mojo and it was 124 days,” Kloza said.
“I think though that we have to beware that the energy crisis isn’t over, it’s just taking a break.”
What happens to gas prices in a couple of weeks?
He said prices will stabilize mid-October.
“I think the next 2 or 3 or 4 weeks are mostly sideways for prices, a little bit lower in the short term, maybe a couple of rebounds here and there," he said.
Kloza added if the economy slows down, consumption will drop even more and gas prices will go even lower.
He said many drivers are understandably delighted to have gas prices dropping. But Kloza was quick to point out a big variable that could strongly impact prices at the pump: whether Russia suddenly decides to cut off oil supplies to Europe.
For New Jersey residents who use heating oil, he said that “this might be a good opportunity to buy it because it’s gone ballistically high in a couple of cases and I wouldn’t be surprised to see that trend revive in the fourth quarter.”