The tides may be turning as gas prices continue to drop…
Auto Club AAA says the average price for gas in Ohio has dropped four cents over the last few days bringing the pain at the pump to $4.12. AAA Spokesperson Kimberly Schwind says crude oil prices have sank below one hundred dollars per barrel which is the first time since March 16th. She says the fluctuation in gas prices is in the investors’ hands.
"Investors have been investing very heavily in crude oil, thinking that if there is a supply shortage, those prices will go up, so as they invest more money into crude oil, we start to see the crude oil prices go up which makes the gas prices go up," said Schwind.
But there is good news…the increase in crude prices has been driven by speculation of future supply issues as opposed to actual supply and demand. Because of this, a growing number of analysts suggest that crude oil is overbought.
"Now we start to see investors pulling out. Realizing we have an abundance in supply, there is no problem in supply. They are pulling their money out of the crude oil. So as we see that happening, we see the prices drop. Therefore, hopefully we will also see the prices drop at the pump," said Schwind.
Schwind says there still remains the concern whether the investors will continue to pull their money out, but in the meantime, we can enjoy the lower prices.