Drivers across the country, including the Tri-States, are enjoying some of the lowest gas prices we've seen within the last year. And it seems they're still falling.
Two dollars and 29 cents sounds cheap and it is compared to what we've seen in gas prices this year. But the question is how long will it stay around?
KHQA talked with Jeremy Dyer, the operations manager for the County Market Express Convenience stores like this one. He told me there are several reasons why we're feeling some relief at the pump.
The first reason is the lack of confidence in the world market. Investors on Wall Street are selling off their commodities right now, which is pushing more oil into the marketplace. More supply means oil prices go down. Right now oil is selling at a little more than 65 dollars a barrel. That's thirty dollars less than it was last month. When we saw prices hit more than four dollars a gallon in July, crude oil was going for 145 dollars a barrel.
The second reason: Gas usage is dropping. Demand is down now in the fall months, and that's cutting consumption.
In addition to that, other world markets like China aren't using as much oil as previously estimated.
Although these prices are easing the pressure now, Dyer says the prices you see at the pump hinge on a couple of factors. Interestingly enough...the outcome of Tuesday's elections. He says if investors like the newly elected president, they may begin buying commodities like oil again, which may or may not drive prices up.
Another X factor lies in the wings however. The Organization of Oil Exporting Countries or OPEC are the officials setting how much oil will be pumped and how much it will cost. Due to low fuel prices, officials there are thinking about decreasing production. That could either stabilize prices where they are now or increase them again.
