Lack of demand motivated oil prices falling
GasBuddy’s Patrick De Haan expects gas prices to continue to plummet, which would be good for the consumer once they go back to work.
As the coronavirus pandemic saps demand for oil throughout the United States, crude oil prices dropped 306 percent on Monday to -$37.63 per gallon, its lowest level since 1983, but don't expect to see that at the pump.
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"At this point, it doesn't look like gasoline will be mirroring the unprecedented drop in WTI crude oil May contract today," Patrick DeHaan, Gasbuddy's senior petroleum analyst, told FOX Business.
While DeHaan doesn't expect the drop to have any effect on retail gas prices, it doesn't mean the national average won't fall.
DeHaan told "The Claman Countdown" he could see the national average for regular gas, which is roughly $1.77 per gallon according to Gasbuddy, falling significantly over the next few weeks, taking out previous lows from 2016 and even 2000.
"We are likely, here in the next 10 days, to fall under previous 2016 lows, and as we continue to go down there’s a good possibility we’ll take out the 2000 low with the national average falling to $1.49 per gallon or more." DeHaan said.
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He attributes the drop in crude oil to the lack in demand since there is "basically no one to demand these barrels of oil" because many people have stopped commuting to work as they shelter in place because of the pandemic, DeHaan said Monday.