Gas prices are going down, down, down, both locally and throughout the country. But they might get lower still.
Philip Verleger, an economist and founder of PK Verleger LLC, said that gas prices could drop all the way down to $2.50 a gallon by November during a recent interview with Bloomberg TV.
Saying that Saudi Arabia has ample reason to “overproduce” more oil than the market needs, Verleger said a barrel of crude oil could fall to $40 a barrel—something the US hasn’t seen since 2008—causing the TV anchor to do a double-take.
“There’s no such thing as fair value,” Verleger explained. “Prices will overshoot for every commodity; farmers have been talking about this for a hundred years.”
Verleger has a PhD in economics and has written “over 100 articles and books” on energy economics, according to The Globalist.
At $40 a barrel, gas would be about $2 a gallon. The current WTI price of a crude oil is $79.67 per barrel according to Oil-Price.net.
In Durham and Middlefield, the cheapest gallon of gas on Friday, June 29, was $3.59 a gallon at Valero gas station at 384 Main Street, Durham.