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Coronavirus causes 'unprecedented' drop in fuel demand
US could see lowest gas prices on record: Analyst
The Price Futures Group senior market analyst Phil Flynn and former WSJ editorial board member Stephen Moore discuss the ongoing oil price war.
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Americans are driving less, and that has led to a glut of gasoline.
GasBuddy released its first quarterly report on Wednesday, which found that demand in gallons of gasoline purchased in the United States declined 20 percent last month when compared with the same period last year — bucking seasonal trends.
There was a 9 percent decline in gallons pumped during the first three months of the year.
And a recent deal struck by countries known as “OPEC plus” to cut global oil production by record amounts is only a “Band-Aid,” Patrick DeHaan, a senior petroleum analyst at GasBuddy, told FOX Business.
“Even if oil does see some sort of rebound then the problem still exists for refiners that millions of Americans are parked,” DeHaan said. “Prices are going to remain depressed for several months if not longer – it could last six to 12 months – until all this gas that’s still being turned out is absorbed by the market.”