The U.S. could see the lowest gasoline prices in history when adjusted for inflation, according to one oil analyst, as the Saudi-Russian oil price war and coronavirus pandemic upset crude prices.
As of Thursday, the national average price of regular gasoline was around $2.19, according to AAA, which is about 39 cents cheaper than the average a year ago.
“We're hearing targets of $1.60, $1.50 a gallon national average,” Phil Flynn, senior market analyst at the Price Futures Group, told FOX Business’ Maria Bartiromo on Friday.
The lower pump prices would come during the coronavirus pandemic, which has weighed on the global economy and spooked investors after "shelter-in-place" orders and social distancing put a halt to nonessential travel.
Crude oil prices have crashed by as much as 63 percent since March 9, when Saudi Arabia cut prices and lowered production.
President Trump on Thursday said he would take action in the oil price wars “at the appropriate time,” adding that low gas prices were good for consumers, despite having adverse effects on the industry.
Treasury Secretary Steven Mnuchin during an interview with FOX Business on Thursday said he will suggest Trump ask Congress for about $20 billion to keep the Strategic Petroleum Reserve full for the next decade.
“Fill up the reserves,” he told Bartiromo.
Flynn said while low gas prices are great for the U.S. economy, it’s also a national security issue.