CHIPLEY- This week the nation saw a historical event when oil prices slipped into the negative. The price of US crude dropped nearly $56 per barrel or 306 percent almost settling at -$37.63 per barrel on Monday night.


According to Mark Jenkins, spokesman, AAA - The Auto Club Group, this was the first time prices have gone into the negative for the first time in history.


Ultimately, the price of crude rebounded, trading at slightly below $1 per barrel.


Jenkins said the one-day drop is the largest on record dating back to 1983, when the previous all-time low was set on March 31, 1983 when prices settled at $10.42 per barrel.


Jenkins said the “unprecedented” drop comes as the global crude supplies begin to stockpile. Due to Covid-19, fuel demand is down, and the oil storage facilities are nearing capacity, with some already at max capacity, Jenkins said. But even with this dilemma, Jenkins said he believes it doesn’t look as though gas prices will also go into the negative - at least for now.


"Gasoline futures only lost 4 cents Monday,“ Jenkins said. ”That’s because gasoline supplies are being throttled down. While three North American refineries have closed, others are reducing their production rates.“


Jenkins said the state average is currently on track to eventually slip into the $1.40s, but remains, “a very fluid situation, as with everything else during this pandemic."


Current average price for gasoline in Florida is $1.82 per gallon. The daily average is 60 cents less than two months ago, and 93 cents less than this time last year.