Plunging Oil Prices Mean Savings at the Pump SoonGRAND FORKS (WDAZ-TV) - Oil is headed for its biggest drop since 2008. The price of a barrel has gone down nearly 16 percent just this month. Because of the decline, gas prices will soon go down as well.
By: Melanie Orlins, WDAZ
GRAND FORKS (WDAZ-TV) - Oil is headed for its biggest drop since 2008. The price of a barrel has gone down nearly 16 percent just this month.
Because of the decline, gas prices will soon go down as well.
Just a few months ago, analysts forecasted summer gas prices to be close to $5 a gallon. Experts say it's a win-lose situation. Although gas prices will be low, it's due to a weak economy.
More money in your pocket, but a reality check for the economy.
"It indicates that the economy is growing more slowly than expected, which means that there's weaker demand for oil," UND Economics professor Cullen Goenner said.
Gas station owner Chad Staus doesn't think the dip in price will last for long.
"I'd assume there will probably be a bump around the 4th of July but it's nice to see the prices come down," Staus said.
Usually around this time of year prices increase by a quarter.
"Very unusual because oil prices typically increase during the summer because it's the biggest driving time," Goenner said.
Goenner says it'll be a few months before we see a drastic price drop, but if it reflects anything close to the prices back in 2008, drivers will be happy.
"It'd be nice but I don't know if we'll ever get there again. I hope so, sure be nice," Staus said.
Although upper Midwest data shows declines already, North Dakota won't have a bigger dip than anywhere else. Even though the state is a top oil producer, none of it stays in-state.
"A thing though to keep in mind is that oil still needs to be refined," Goenner said.
Oil experts say once the economy shows signs of strength, we should expect prices to bounce back.