DALLAS (1080 KRLD) - The latest round of Trump administration tariffs on goods from China ignited new concerns over a slowing global economy. That sent oil prices into a downward spiral Thursday afternoon.
After opening at $57.85 a barrel Thursday, the near-month contract for West Texas Intermediate Crude tumbled more than 8%, falling below $54 late in the session.
While the latest tariffs could lead to higher prices on some imported goods, the plummeting oil prices should also mean a more favorable experience next time you visit the gas pump.
GasBuddy.com Head of Petroleum Analysis Patrick DeHaan said the current average price for regular unleaded in Dallas-Fort Worth is $2.48, down 23 cents from one year ago. "Should this road continue between the U.S. and China, this trade war continue, I think there's a possibility here that the average price in Dallas could eventually fall under $2 a gallon by later this fall," he said.
DeHaan added some DFW stations could reach the $2 mark a lot more quickly. "Of course, some stations in Dallas are just ten cents away from reaching that $1.99 mark. And the big drop in oil (Thursday) may help gas stations get to that point sooner, at least the cheapest stations in Dallas are soon likely to fall back below $2 a gallon," he said.
Oil prices are up over 17% this year, but off by more than 12% over the last three months.
