-$37.63…. no, that’s not $37.63 per barrel, that’s negative $37.63 per barrel! Can you believe it? That was the price as of yesterday.
We’ve apparently run out of places to store oil. Yesterday was also the due date for April options and that meant either take delivery of what you bought on the margin or sell at whatever the price happens to be. In this case the price to unload your oil commodity went negative….really negative, an unprecedented negative.
This is a historic moment for the oil industry. We’ve simply never seen such a catastrophic price plunge before and likely we never see it again.
What does it mean for pump prices here? Well, there’s a bit of lag time before it’s really going to be felt but it’s safe to say pump prices will drop dramatically very soon. However, right now the best price on a gallon of gasoline is in Wisconsin. It will cost you about $1.19, but, in California, because of our special fuel formulation and gas taxes, a gallon is still hanging up there at $2.77 on average.
We’re paying the 2nd highest in the nation, right behind Hawaii. Considering CA is an oil producing state with huge refineries, that seems almost criminal. But, the sheeple in this state keep electing the crooks and fools that dominate Sacramento.
Most of the Midwest states are priced about a $1.50. So if you don’t like to pay nearly twice the national average for a tank of gas…thank the CA democrats, they stuck it to you.