A local expert spoke to Your Hometown Stations on why we are seeing cheaper prices at the gas pump.
Former Saudi Aramco employee Steve Cleaves said this stems from an oil war between Russia and Saudi Arabia. The two countries continue to up their production while the demand stays relatively where it has been. There has been a slight decrease in oil demand because of the coronavirus. Cleaves said Russia is attempting to control oil distribution in Europe and bankrupt the U.S oil shale and tar sand industry. The U.S. is attempting to block Russia from its distribution to Europe.
"For U.S. sales into Europe, we have been exporting, Russians are trying to cut those off by lowering the price," Cleaves said. "So the Russians and the Saudis are now in a war to gain market share and the U.S. oil industry is basically collateral damage."
Cleaves thinks this could go on for a few months and could cost many their jobs in the oil industry.
