SCSU’s Banaian: Reason for Declining Gas Prices
Gas prices has been on the steady decline in the past few weeks. St. Cloud State Dean, School of Public Affairs and Economics Professor King Banaian joined me on WJON. He says there are a couple of reasons for the decline in gas prices. Banaian says people are driving less which means there is extra gas to move. He says the other reason is push to put money into jet fuel. Banaian says many barrels of oil were converted into jet fuel which will not work for car. He says this made less available for cars for awhile but more barrels of oil have been made available for gasoline for cars.
Banaian says this drop in gas prices feels like a temporary thing. He says prices will likely come back up because the cost of a barrel of oil just hasn't changed much from early July to late July and gas prices dropped significantly. Banaian says a move back up to around $4 a gallon wouldn't be a surprise. I asked King if demand would need to go up to push gas prices back up. He doesn't think so.
If you'd like to listen to my conversation with King Banaian it is available below.