Dave Vang, professor of finance at the University of St. Thomas Opus College of Business, recently spoke with KSTP-TV about gas prices dropping and how long the lower prices could last.
From the story:
“It was kind of nice that the drop in prices happened before the Thanksgiving holiday,” says Dave Vang, a finance professor at the University of St. Thomas.
Vang says it’s about supply and demand.
He notes the price spike during the switch to winter-blend gasoline is now over and that American oil production has hit an all-time high at more than 13 million barrels a day.
“With things going on in the Middle East, the entities in the supply chain kind of anticipated this, so they kind of started to increase their inventories,” he says.
Vang also says things could change by December – that if many more people begin driving and gas consumption rises … or if there’s a major world event.
He says some good news is that some suppliers have enough inventory for prices to remain relatively stable for the next month or so.