- One gas station in London, Kentucky, is selling gas for just 99 cents a gallon, according to fuel price tracking company GasBuddy.
- The coronavirus has slashed the global price of oil to $20 a barrel - the lowest price since 2002.
- Patrick DeHaan, head of petroleum analysis for GasBuddy, said gas prices for consumers are likely to fall more yet. Nationwide, gas prices are have hit $2.14 a gallon.
- Still, the plummeting oil demand is a warning sign for the rest of the global economy.
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As the coronavirus slashes oil demand worldwide, one gas station in London, Kentucky, is selling gas for 99 cents a gallon. That's according to fuel price tracking company GasBuddy.
"Absolutely amazing to see how quickly prices have fallen, and the return of something few Americans have seen since the early 2000s," said Patrick DeHaan, head of petroleum analysis for GasBuddy, in a press release. "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."
GasBuddy found that, nationwide, gas prices have hit $2.14 a gallon. DeHaan said in a Facebook live stream that those prices are expected to dip by another 35 to 70 cents in the coming days.
The coronavirus has slashed the global price of oil to $20 a barrel - the lowest price since 2002. Rystad senior oil markets analyst Paola Rodriguez-Masiu said it may sink even lower - to $10 a barrel.
More folks are staying indoors and don't need to fuel up their cars, which DeHaan says is helping lower gas prices. Another reason for the falling prices is lowered demand from core industries; fewer planes, cruise ships, and factories are functioning at typical levels.
Meanwhile, Russia and Saudi Arabia, two of the world's largest oil producers, are in a spat that's destabilizing the supply of oil. Amid declining demand, Russia and Saudi Arabia have both refused to cut production of crude, and are even ramping up.
It's good news for consumers who need to fill up their tanks, but the sinking price of oil reveals a global economy that's teetering towards recession.
"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.
"From April 1, about 4 million (barrels per day) could flood the markets, potentially pushing down crude oil prices into the teens," Jefferies said in a recent note. "Unless somebody intervenes, no oil producer benefits from the current environment."
Regardless, President Donald Trump said in a tweet earlier this month that the collapse of global oil prices is ultimately a win for consumers:
Get the latest Oil WTI price here.
Good for the consumer, gasoline prices coming down!
- Donald J. Trump (@realDonaldTrump) March 9, 2020