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IPFS News Link • Oil

US Gasoline Crashes To 50c - Lowest Since 2001 - Amid "Unprecedented" Demand Collapse

• https://www.zerohedge.com, by Tyler Durden

The previous gasoline contract last traded that low in 2001...

All of which means Americans - on average - can expect gas-prices at the pump to plunge below $2/gallon very soon...

Energy prices slid toward this multi-decade low on plunging demand due to the economic fallout from the coronavirus crisis, and as prospects for a OPEC-Texas production deal faded.

The government is taking a 'whatever it takes' approach," said Marshall Steeves, an analyst at IHS Markit.

"That doesn't change the fact that demand destruction is going to continue. There are still so many unknowns on the demand front. The duration of this economic shutdown is so uncertain that it's making me believe the bottom may not be in yet."

As Bloomberg notes, the prospects for the oil market remain bleak with more nations going into lockdown to tackle the virus. At the same time, supply is surging. The chance that either Saudi Arabia or Russia will back down from their price war seems remote, with President Vladimir Putin unlikely to submit to what he sees as the kingdom's oil blackmail, according to Kremlin watchers.


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