One oil analyst said the United States could see its lowest gas prices in history when adjusted for inflation.
As the coronavirus pandemic worsens and an oil-price war between Saudi Arabia and Russia continues, Phil Flynn, senior market analyst at the Price Futures Group, told Fox Business on Friday that America might be in store for some historically low gas prices.
“We’re hearing targets of $1.60, $1.50 a gallon national average,” Flynn said. Crude oil prices have plummeted as much as 63% since Saudi Arabia lowered production and cut prices of oil earlier this month.
The national average gas price in the U.S. was $2.17 as of Friday, according to AAA’s tracker. A month ago, that average was $2.45. The number has declined in recent weeks as the Russian-Saudi row continues and as investors become increasingly nervous about the lack of travel during the coronavirus outbreak.
Treasury Secretary Steven Mnuchin said Thursday that he was pushing President Trump to request about $20 billion from Congress to keep the Strategic Petroleum Reserve full.
“Fill up the reserves,” Mnuchin said.
Trump said Thursday that his administration was considering mediation of the Russia-Saudi Arabia price war and would get involved at “the appropriate time.”
“I spoke with numerous people that have a lot to do with it,” Trump said at a White House briefing. “And we have a lot of power over the situation. We’re trying to find some kind of a medium ground.”
As of Friday afternoon, more than 16,600 people in the U.S. have tested positive for the virus, 121 have recovered, and 216 have died, according to the Johns Hopkins University tracker.