If you thought oil cheaper than beer was a bargain, we have some news for you.
NBC reports May deliveries for West Texas Intermediate, which is the “U.S. benchmark crude,” have plummeted to -$37.63 (-£30.25 / €34.64) a barrel.
Yes, you read that correctly, producers are willing to pay people to take crude oil off their hands. That’s a shocking development and the publication notes it’s the first time the number has turned negative.
Also Read: Oil Prices Continue To Plummet, A Barrel Now Cheaper Than Beer In Canada
The massive drop in prices is being blamed on the coronavirus pandemic which has sent demand for oil plummeting. With people driving less and airlines grounding flights, there’s far more supply than demand.
As the BBC noted, this presents a major problem as producers are running out of places to put oil and there’s a fear that “storage capacity could run out in May.” Things have gotten so bad that some companies are renting oil tankers just to store oil rather than transport it.
While you shouldn’t expect to get paid for filling up, AAA reports 25% of gas stations in the United States are selling a gallon of gas for $1.49 (£1.20 / €1.37) or less. Wisconsin has the cheapest gas with an average price of $1.22 (£0.98 / £1.12) a gallon and the state is followed by Oklahoma ($1.38 / £1.11 / €1.27) and Ohio ($1.41 / £1.13 / €1.30). Of course, those are just average prices and a number of stations are selling gas for less than $1 (£0.80 / €0.92).
Even before today’s news broke, AAA spokesperson Jeanette Casselano said “Even with regional refinery rates dropping, we will continue to see gas prices decrease though potentially at a slower rate than the past few weeks.”
