New normal? Gasoline prices rising, but still a bargain from five years ago

Jon Gargis   Apr 6, 2016 Though gas prices in recent weeks have been on an upswing and are…

Georgia (Apr 11, 2016)

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http://www.mdjonline.com/news/gasoline-prices-rising-but-still-a-bargain-from-five-years/article_4dcaee7e-fc69-11e5-90e5-dbbc9c6dcac6.html
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  • Though gas prices in recent weeks have been on an upswing and are expected to increase as the summer driving season draws closer, one Kennesaw State University economist said the cost at the pump is expected to remain far under where it peaked just five years ago.

    Roger Tutterow, professor of economics and director of the Econometric Center at KSU, said while the increased demand for gasoline typically seen during the warmer months would likely have an effect on prices, crude oil prices would have a greater effect, and he believes those prices will stay relatively low through the remainder of the year and into 2017.

    “We have increased domestic production so much over the past 10 years — that built up some inventories. And we have yet to see a meaningful reduction of oil coming out of the Middle East. That kind of departs with a historical pattern where for the past several decades, when oil prices came down, Middle Eastern countries would cut their production to support price,” Tutterow said. “They’ve been reluctant to do so the past few years, so we really haven’t seen much in the way of a supply restriction in response to lower prices out of that region.” …

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A leader in innovative teaching and learning, Kennesaw State University offers more than 150 undergraduate, graduate and doctoral degrees to its approximately 41,000 students. With 11 colleges on two metro Atlanta campuses, Kennesaw State is a member of the University System of Georgia and the third-largest university in the state. The university’s vibrant campus culture, diverse population, strong global ties and entrepreneurial spirit draw students from throughout the region and from 92 countries across the globe. Kennesaw State is a Carnegie-designated doctoral research institution (R2), placing it among an elite group of only 6 percent of U.S. colleges and universities with an R1 or R2 status, and one of the 50 largest public institutions in the country. For more information, visit kennesaw.edu

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