Gas prices have seen a drastic drop in price. Due to the effects of COVID-19, massive fuel is in production, but there are no buyers. This has led to large scale supply but low scale demand.
Gas Price War
Prior to the events of COVID-19, Russia and Saudi Arabia went into a “arms-race” to produce the most oil. With the high production of oil, the lower the cost and the more people used it. Both countries did this so they could remove the limit sanctioned on them for production.
Things were looking good until COVID-19 swept the globe. Once countries started enacting stay-in-place protocols, fuel companies were left with the high supply that would drive down the cost but without anyone driving.
Saudi Arabia and Russia would learn too little too late as they tried to stem the flow by cutting production by 10%. This did little in the way to stop barrels of oil from spiraling past the negative.
Gas Prices Drop Across The US
While many still lay dormant behind their doors to avoid COVID-19, others are getting ready to go back to work. What greets them on their way to the office will be extensively low fuel prices. In some states, gas prices have been the lowest they have been in over 20 years. The entire collapse of the oil industry will be a slow pace to get back up to speed. It is indeterminable as to when these prices will return (or worse, even higher).
Until then the only way to tell is when the lock downs end and people start going back to work. Even, then its a state-by-state and country-by-country case. For the many who continue to work under these conditions, the lower cost of gas has brought a silver lining. Many will be pleased to at least see some of their daily lives cost a little less.