Expert gives insight into drop in prices at gas pump - KMOV.com

Expert gives insight into drop in prices at gas pump

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ST. LOUIS, Mo. (KMOV.com) – There has been a drop at the gas pump lately and News 4 spoke to an expert to find out if the download trend will continue.

Rayola Dougher with the American Petroleum Institute told News 4 the roller-coaster gas prices are because of supply and demand.

“The variability nine times out of 10 has to do with the crude oil market. Once in a while there will be a refinery issue, there will be an extended outage someplace or something unexpected. Really what you’re seeing is that,” said Dougher.

When gas prices do a big jump, for example rising by 20 or 30 cents at a time, it usually takes a week or two for them to drop back down.

The price always jumps by the same amount at every gas station in town because, Dougher said, “It’s a commodity market and the price of crude oil is set on the world’s market everyday by all the buyers and sellers in the world’s market. Oil companies don’t get to determine what that price will be.”

Dougher told News 4 it is hard to know how much the prices will jump or drop, but there is still an oversupply in the world’s market so they could continue dropping.

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