Economist: Gas Prices Could Dip Below $2.50

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.

As of Sunday morning, the cheapest gas in Oxford was at at 355 Oxford Road; it was $3.64 a gallon, according to the commute section on Oxford Patch.