TYLER, Texas (KETK) – One side story of the coronavirus has been the effect that stay-at-home orders have had on the oil industry.
Quarantine directives over the past six weeks that have drastically dropped the need for driving along with a supply surplus from Saudi Arabia and Russia has sent prices plummeting.
In Texas, the statewide average for a gallon of gas dropped to $1.50 this week for the first time since the end of President George W. Bush’s administration. This is according to AAA Texas.
Of the major metropolitan areas surveyed in Texas, drivers in Midland are paying the most on average at $1.76 while drivers in Sherman/Denison are paying the least at $1.17 per gallon.
“COVID-19 has destroyed demand for gasoline for well over a month. This has allowed oil prices to plummet to historical lows at times in April, and gas prices have slid to prices not seen in more than 11 years in the Lone Star State.”AAA Texas Spokesman Danie Armbruster
Refinery utilization increased slightly to just under 75% in the Gulf Coast region last week, according to the Energy Information Administration. Typically, April sees regional refinery rates in the 90% range.