Concerns over lessening demand and uncertainty involving the Wuhan Coronavirus are likely to keep oil prices low, and volatile for the near future according to the LSU Center for Energy Studies.
Executive Director David Dismukes says the phase one trade deal with China was initially good news for the industry, but that’s being overshadowed now by the outbreak.
“I think this kind of put a torpedo in it and put a much more negative view in crude prices,” says Dismukes.
Oil is at 50 dollars a barrel and Dismukes says that number could continue dropping.
“Some analysts and some investment banks downgraded price forecasts by as much as ten dollars a barrel as we moved through 2020 when earlier in the year we were looking at price increases,” says Dismukes.
Much of the price volatility is driven by uncertainty. Dismukes says until the world finds out just how severe the Wuhan Coronavirus is, prices will remain in flux, but trending downward.
“The big thing that most people are trying to get their hands around is just how significant this event is, how big, how large the scope is, whether it will be restricted,” says Dismukes.
A gallon of gas in Louisiana averages $2.13
