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Gas prices across the U.S. hit another national low

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WASHINGTON, D.C. — The national gas price average has steadily declined for seven weeks, pushing the average to $1.86 this week. 

In Nebraska, the average is down to $1.82 with the lowest prices found in Thurston County where unleaded averages $1.28 a gallon.

The decline is due to COVID-19’s chilling effect on the global economy and the crude oil price war between Saudi Arabia and Russia. 

Crude plummeted to $20/barrel last week – a closing price not seen since 2002.  

During the past month, crude oil has fallen 57 percent in the U.S. commodities market; crude is down 67 percent compared to this time last year.

“AAA expects retail gas prices to keep dropping as cheaper crude makes its way through the refining and delivery process, with a strong likelihood the national average for unleaded fuel will fall to $1.75 a gallon before the end of April,” said Rose White, public affairs director for AAA Auto Club. 

During this timeframe (since late February), U.S. demand for gasoline has decreased 44% to 5 million b/d as gasoline inventories build across the country.

“We are seeing fast and furious gasoline demand destruction. The latest data reveals demand levels not seen since spring of 1968,” said Jeanette Casselano, AAA spokesperson. “Every U.S. region is seeing builds in gasoline inventories and crude storage, which is just driving pump prices even cheaper.”

On Sunday, the Organization of the Petroleum Exporting Countries, led by Saudi Arabia, announced historic productions cuts – nearly 10 million b/d in May and June.

“While the production cut is historic, it’s likely to not have an immediate impact on pump prices given the impact the COVID-19 pandemic continues to have on crude oil prices and gasoline demand,” said Casselano.

At $1.86, today’s national average is 6-cents less than last week, 44-cents cheaper than a month ago and nearly $1 less than a year ago.