Gasoline Futures Hit 50 Cents a Gallon For First Time Since 2001

(Bloomberg) — Gasoline futures tumbled 17% in intraday trading to touch 50 cents a gallon for the first time since 2001 as the coronavirus pandemic sharply curtails demand for transportation amid widespread economic shutdowns.

Nymex futures prices are down 70% since the start of the year as storage tanks fill up. The last time prices were this low was in November 2001 in the aftermath of the 9/11 attacks.

Crude and fuel prices have plummeted this month as demand has weakened while the impact of Saudi Arabia and Russia’s price war continues to weigh on the market. At the same time, the world is running out of space for jet fuel storage.

U.S. retail gasoline averaged $2.13 a gallon Monday, down from $2.62 a year ago, according to AAA. Retail prices at the pump are likely to dip below $1.99 a gallon in next three days and under $1.50 by mid-April, according to Patrick DeHaan, an analyst at GasBuddy.

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