Low demand in oil causes gas prices to increase
April 9, 2009
Gas prices are rising slowly due to the low demand for oil.
NIU Transportation Manager Bill Finucanesaid cuts are being made by the Organization of the Petroleum Exporting Countries which cause prices to rise.
“OPEC has made cuts to their production which has caused the recent increase in gas prices,” he said.
Finucane said it all has to do with supply and demand.
“When there is less demand, production goes down,” he said. “It’s the simple rule of supply and demand.”
Junior English major Quinton Arthur said he is saddened by the thought gas prices are rising.
“It’s a shame that they’re starting to go back up,” Arthur said. “It makes it harder for me to manage and maintain things financially.”
Senior history major Tom Stump said he understands why gas prices have been increasing.
“Oil companies have to raise prices again because they have to react to the economy,” Stump said.
Stump said he tries to watch his driving usage but finds it difficult to do.
“I’m a commuter so I have to drive as usual despite whatever the price of gas happens to be,” he said.
A sampling of gas prices around the DeKalb area ranged from $2.10 to $2.15 Thursday.
Mileage is another factor that determines the price of gas.
“Mileage has been down for a while so the increase shouldn’t be too significant for now,” Finucane said.
Finucane said the economy has a been a factor for people not driving as much as they used to.
“With the overall economy, people are driving less,” he said. “And there are less people working has them driving a smaller amount.”
Finucane said people could be driving more when summer arrives.
“Typically during the summer driving season mileage usage increases, which causes gas prices to rise because of the higher demand for oil,” he said.