It’s that time of year again; the summer driving season. Which usually means higher gas prices, but as you’ve probably seen, prices have been falling.
There is no doubt that people are paying less at the pump. At Byrne Dairy in Oswego, customers are paying $3.49 per gallon. That is six cents less than last week, and 20-cents less than a month ago.
Compared to last year, customers are paying close to 50-cents less per gallon than they did when prices were over four dollars around this same time. But will the decrease continue?
Economics professor, Glenn Graham tells us what changes and demands could cause a rise.
In the U.S., refining capacity is at an all-time high and refiners have gotten a head start on making gasoline for the summer season. With supplies above normal for this time of year, refineries may pull back on oil purchases in the coming months.That will slow the drawing down of oil supplies, and keep prices lower.
However, now that we’ve entered into a economic recovery, demand for oil and petroleum products is expected to rise. The question is whether or not increased demand in the United States is going to be off set or amplified by changes and demand in the emerging nations like India and China.
By Ali Stewart