Despite the general softness in the oil market the past couple of weeks fueled by Corona, gasoline, at least in my neck of the woods, has remained stubbornly sitting right in the $2.25 to $2.45 range, with one outlier station (the Exon I've talked about) still sitting at $2.99 a gallon.
Hopefully that might change in the next few days because, despite OPEC efforts to reach a broad agreement to cut 1.5 million barrels of production a day until the end of the year to prop up prices, it's being reported that the effort has failed because the Russians wouldn't agree to it.
Right now WTI is down 7.5% and flirting with dropping below $42 a barrel, and I'm seeing some short term predictions that, if OPEC doesn't reach some kind of agreement and Corona keeps spread, it could drop into the mid 30s.
Of course, that could all change in a heartbeat if OPEC and its nonmember partners reach an agreement.
Some are suggesting that this is a strategic move on the part of the Russians to help thin out some of the competition, including US oil shale. Those Ruskies wouldn't play that kind of hardball, would they?
