ASU economics professor explains how oil price drop affects the U.S.

Under normal conditions, lower oil prices would be a good thing for consumers going to the gas pump. Except with many staying home amid coronavirus, people are not taking advantage of lower prices and filling their tanks as often.

Under normal conditions, lower oil prices would be a good thing for consumers going to the gas pump. Except with many staying home amid coronavirus, people are not taking advantage of lower prices and filling their tanks as often.

Bart Hobijn, professor of economics, joined The Show to talk about it. In this story aired March 20, 2020, on KJZZ:

People are using less oil to fly airplanes, less oil is being used in production because factories are slowing down production in China and other places around the world. People are using less oil in terms of gasoline because fewer people are driving and commuting. So there's a decline in demand for oil. On top of that, there's no drop in the supply because of the implicit competition between Saudi Arabia and Russia.

– Professor of Economics Bart Hobijn