As the coronavirus slashes oil demand worldwide, one gas station in London, Kentucky, is selling gas for 99 cents a gallon. In Kentucky, prices at one gas station hit a low of just 99 cents, WTVF reported. On the week, gas price averages in 35 states decreased by double-digits, pushing the national average to $2.25, the cheapest price point of the year. "AAA expects gas prices to continue trending cheaper before the end of March". The last time prices dropped below $1.60 was in December 2008, during the financial crisis, after falling from a July high of $4.10, Gas Buddy noted.
Tuesday, the average US gasoline price dropped to $2.24, which is down by 20 cents from a month ago, according to Breitbart News.
The national average price will probably decline further - perhaps to between $1.25 to $1.50 per gallon - in the next few months, he said. That's down 13 cents from a week ago and 36 cents lower than a year ago.
The highest gasoline prices recorded in the state, according to the survey firm, were seen in Columbia County, Howard County, and Marion County, all of which averaged $2.13 per gallon on Thursday morning. That's according to fuel price tracking company GasBuddy. "We're in uncharted waters due to demand plummeting in light of the coronavirus situation, and yesterday oil prices fell to their lowest level since 2002 in a sign of the deep distress our economy is facing".
With more than 10,000 cases and 152 people having died from the novel coronavirus, demand could remain low for the foreseeable future. This means very little need (demand) for oil. Due to the lack of demand, two of the biggest oil-producing countries in the world, Saudi Arabia and Russian Federation, met to discuss plans to cut back on oil production in hopes of stabilizing prices.
The American oil benchmark, West Texas Intermediate, dropped 24% to just over $21 a barrel, the lowest price since 2003.
"The last time there was a global surplus of this magnitude was never", Jim Burkhard, vice president and head of oil markets at IHS Markit, wrote in a note to investors Monday.