Lansing, Mich. (WLNS) With flights grounded and many people staying off of the roads, the demand for oil has tanked. For the first time in history, the price of oil has fallen into the negative.
Some companies are running out of places to store crude oil, so they are essentially paying places to take its product. As a result, prices at the pump are at a four year low, averaging $1.47 for a gallon of regular in Michigan.
Patrick De Haan, the head of petroleum analysis at Gasbuddy says the price at the pump could stay low for awhile.
“I think overall low gas prices will stick around for months from now,” says Patrick De Haan, the head of petroleum analysis at Gasbuddy “we could be talking about summer gas prices that barely if they even do hit two dollars a gallon.”
But De Haan warns, low gas prices now, could mean a spike down the road.
“If oil companies stop producing, if they stop drilling because it’s uneconomical right now, that could affect production in the years ahead, .99 prices are, you know, terrific to fill up with, but its going to mean a slingshot in gas prices down the road.”
Tuesday morning, President Trump tweeted that he has instructed the Secretary of Treasury and the Secretary of Energy to come up with a plan to help the oil and gas industry.