CHARLOTTE, N.C. (April 20, 2020) — Monday’s oil prices went into the negative for the first time in history. The price of US crude dropped nearly $56 per barrel or 306 percent to settle at -$37.63 per barrel.
The one-day drop is the largest on record dating back to 1983. The final price is far below the previous all-time low of $10.42 per barrel set on March 31, 1983.
The unprecedented drop comes as the global crude supplies begin to backup with nowhere for it to go. Fuel demand is down due to COVID-19 and storage facilities are at or near capacity Gasoline futures only lost 4 cents on Monday, as gasoline supplies are being throttled down.
“Gas prices are continuing to decline as COVID-related stay-at-home orders are keeping motorists off the road,” said Tiffany Wright, AAA spokesperson. “With fewer motorists on the road, demand for gasoline has decreased nearly 60% and crude oil prices also sank to new lows which should drive prices down even lower.”
Monday’s average price for gasoline in North Carolina is $1.68 per gallon, 30 cents less than a month ago and 98 cents less than a year ago. South Carolina’s $1.61 average is 30 cents less than a month ago and 92 cents less than a year ago.
For updated state and metro prices log on to https://gasprices.aaa.com/
As of this writing Monday night, the price of crude returned to positive territory, trading at slightly below $1 per barrel.
About AAA – The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, banking, financial services, and travel offerings to over 13.5 million members across 13 U.S. states, the province of Quebec and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Carolina, North Dakota, Tennessee, Wisconsin, Puerto Rico, South Carolina and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. Visit AAA on the Internet at AAA.com.