Marquette economist: get used to gas under $2
Posted: Jan 14, 2015 11:44 PM CST | Updated: Jan 14, 2015 11:45 PM CST
We went to Dr. Abdur Chowdhury, Chair and Professor of Economics for Marquette University, for the answer. Great news for drivers, Chowdhury thinks these oil prices, and therefore low gas prices, will stick around for all of 2015.
\"In 2015, I would say oil prices will stay in this $50-60 dollar, or even less, range,\" he said.
How did drivers get so lucky? Dr. Chowdhury thinks that supply and demand plays a part in low gas prices, but also international politics. \"Saudi Arabia, in my opinion, is the net winner in all this,\" Chowdhury said. \"They are seeing that if they do not set a floor price (for oil), what this will do is create a problem for their arch-enemy Iran.\"
Dr. Chowdhury says not just Iran, but other oil-producing competitors in Russia and Venezuela will be adversely affected. \"Those are the countries that are really getting hit by this drop in oil prices,\" he said.
Dr. Chowdhury says that while some U-S oil producers will take a hit in their bottom line, overall these prices are good for the nation's economy.