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Crude oil drops to lowest price in five months

Mounting concerns over the increase in global coronavirus cases and the reinstatement of lockdown policies in some countries has driven crude oil prices down to the lowest closing price—$35 a barrel—since June, AAA reported on Monday. In comparison, last year at this time crude was pricing at about $20 per barrel more expensive.

As crude prices decreased last week, the U.S. saw fluctuation in gasoline demand and supply. Demand increased from 8.2 million barrels/day to 8.5 million barrels/day while supply decreased 90,000 barrels/day to 226 million barrels. Despite the jump in demand, motorists are paying less to fill up. The national average pushed four cents cheaper to $2.12, while every state except South Dakota (up 1 cent) saw gas prices hold steady or decrease.

“The national gas price average at the start of November has not been this cheap since 2004. If crude oil continues to push cheaper, we could see the national average drop below $2/gallon before the end of the year,” ...

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