GULFPORT, Miss. (WXXV) — Gas prices continue to fall across the country as the cost of crude oil hit 4-year low on Monday.
At $2.38 per gallon, the national gas price average has not been this cheap since last February.
Tuesday, the average cost of regular gasoline in Mississippi was $2.07 per gallon, the second-lowest in the United States, according to the American Automobile Association (AAA).
AAA says the nation’s top 10 least expensive markets are:
- #1 — Texas ($2.06)
- #2 — Mississippi ($2.07)
- #3 — Oklahoma ($2.07)
- #4 — South Carolina ($2.09)
- #5 — Louisiana ($2.10)
- #6 — Missouri ($2.10)
- #7 — Alabama ($2.11)
- #8 — Arkansas ($2.13)
- #9 — Kansas ($2.14)
- #10 — Tennessee ($2.16)
The dramatic decrease in the price of crude oil stems from concerns about coronavirus and disagreements within OPEC, the Organization of the Petroleum Exporting Countries.
Decreased demand due to the #coronavirus and the most significant drop in oil prices since 1991 are sending gas prices down across the US, with the national average falling to $2.36/gal. pic.twitter.com/FRBLgovAzY
— GasBuddy (@GasBuddy) March 9, 2020
Saudi Arabia’s state-run oil company says it will increase its oil production to 12.3 million barrels a day in April, a record amount.
Tuesday’s move makes good on the country’s promise over the weekend to increase output, after Russia refused to cooperate on cutting production.
That breakdown in cooperation led to a 25% plunge in the price of crude on Monday. It’s the sharpest decline seen since the 1991 Gulf War.
Outside of the hostile negotiations with OPEC, AAA says that crude prices are likely to continue facing significant downward pressure until it appears that the international public health threat from the coronavirus decreases.