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Gasoline Futures Plummet to 20-Year Low On Flatlining Demand

Nymex prices have fallen more than 70% since start of year
Some U.S. pump prices already sinking below $1 a gallon

U.S. Cost Of Living Declines Most In 6 Years On Low Fuel Costs — Photographer: Luke Sharrett/Bloomberg

By

Michael Jeffers and

March 23, 2020, 3:29 PM UTCUpdated onMarch 23, 2020, 8:10 PM UTC

U.S. gasoline futures settled at the lowest in more than two decades as the coronavirus pandemic crushed demand and forced local governments across the country to issue shelter-in-place orders.

Nymex futures prices fell 32% on Monday. The price fallout has also forced widespread production cuts at refineries across the country. Profit margins on fuel production have collapsed with the spread between West Texas Intermediate crude and Nymex RBOB futures turning negative for the first time since 2008.