Why the gasoline price dropped?

Let's take a closer look at the oil market. It is experiencing the worst volatility in decades. And it is caused by oversupply of crude oil, low demand for fuels (nobody's flying, driving, cruising like before anymore) due to corona lockdown and there's no place left to store the oil. In addition to it OPEC (The organization of the Petroleum Exporting Countries: 13 big oil owning nations came together to unify the petroleum policies and stabilize the oil markets) refused to cut oil production, leading to the price fall from $100 a barrel to below $50 a barrel.

In addition to it Saudi Arabia launched a price war to Russia, which follows a rift between President Vladimir Putin and crown prince Mohammed bin Salman. The move followed the implosion of an alliance between the two leading OPEC cartels. Saudi wanted to cut the supply from 2.1 million barrels per day to 3.6 million barrels through 2020 to take account of weaker consumption but V. Putin didn't want to do that and ditched the alliance.

The drop in oil price will mostly affect countries who heavily rely on it. For us consumers it has somewhat a positive impact, such as low cost for plane tickets, ground transportation, gas. Although experts say that the oil price will increase in the second half of the year to $30/b and to $46/b in 2021. They say.. but we will see how it goes:)