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Updated March 31st, 2020 at 11:16 IST

US gas prices drop amid virus-driven slowdown

Gas prices across the nation are still falling amid decreased demand with fewer drivers on the road during the coronavirus outbreak.

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Gas prices across the nation are still falling amid decreased demand with fewer drivers on the road during the coronavirus outbreak.

The national average gas price Friday was $2.05 per gallon, down 12 cents from a week ago.

Analysts say that as the price of crude oil drops to levels not seen since the early 2000s, gasoline prices are following suit.

"We're seeing diminishing demand, while everyone's at home practicing social distancing, in addition to really cheap crude oil. And also impacting the cheaper crude oil and the cheaper gas prices is the price wars between Saudi Arabia and Russia," said Jeanette Casselano, spokeswoman with the American Automobile Association.

Casselano said the current national average price, as of Monday, now stands at $2.01.

Some of Monday's sharpest action in U.S. financial markets was in oil, where benchmark U.S. crude fell more than 5% and dropped below $20 per barrel for the first time since early 2002.

Oil started the year above $60, and prices have plunged on expectations that a weakened global economy will burn less fuel. The world is awash in oil, meanwhile, as producers continue to pull more of it out of the ground.

For most people, the new coronavirus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia and death.

 

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Published March 31st, 2020 at 11:16 IST

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