Posted at: 10/21/2013 9:29 PM
Updated at: 10/22/2013 7:31 AM
By: Jay Kolls
Gas prices at the pump are down more than 60 cents a gallon across Minnesota, but there is an abundance of oil worldwide.
We asked the top financial guy at the American Petroleum Institute (AMI) why gas prices aren't even lower if there is a strong supply of oil around the globe. John Flemy, AMI Chief Economist, tells us the price is tied to weather, demand and three factors he calls, "China, China, China."
Flemy says Chinese demand has a large determining factor in what prices will be all over the world. Right now, Flemy says, there is high demand, but oil production is at a 10-year high as well.
Flemy says a slower economy has reduced demand somewhat here in the United States, and that is part of the reason we have prices hovering around $3.30 a gallon in the Metro and around most of Minnesota.
Flemy says it is very hard to forecast what the world economy will do over the next six months, so it is hard to know if gas prices will stay where they are or go down even more.