Gas prices had plummeted to as low as 99 cents a gallon nearly a month ago amid the coronavirus pandemic. Now, American oil prices have hit a record low, sinking below $0 a barrel.
Several reports say that the collapse in oil markets is one that has no sign of easing amid the crippling coronavirus crisis. US oil prices fell below $0, showing -$37.63 a barrel — the lowest since NYMEX (New York Mercantile Exchange) opened trading in 1983.
While trading contracts are set to end in May, Senior Market Analyst at Oanda, Edward Moya, shares, “The collapse…is mostly a reflection of traders rolling contracts to June as no one wants to take delivery because storage capacity is getting close to being reached.” Since lockdowns are enacted nationwide and no one is driving as much, gas stations and storage facilities are backed up with crude; which could potentially mean customers can walk away with barrels of their own.