Gas prices are expected to drop in coming weeks


UTICA, N.Y. (WKTV) - Each spring gas prices have been known to go up a bit higher as Memorial Day approaches, but gas industry experts say not this year.

Gas industry experts say there are three main reasons why prices are expected to drop.

First, the tensions with Iran have eased recently over its nuclear program.

Second, a slowing global economy has caused the demand worldwide to go down.

The combination of those two factors have led to the big third reason, the price of gasoline futures have gone down.

Futures contracts are financial instruments used to set prices.

AAA Regional General Manager Ed Welsh says futures are a big indicator os what is to come, "one of the indicators that tells you how the market is feeling about things is the futures markets. everyday you hear futures price, that's an agreement of what you're going to buy in the future. What comes out of the ground today so what oil refineries have to do is assign contracts for the next months production."

Because of the approximate 30 cents per gallon drop in futures, experts say you can expect to see gas prices drop over the next few weeks, maybe not by that same 30 cents per gallon, but they should come down from where they are now.

Lawrence Holliman of Utica, who was filling up at the Citgo station in North Utica Monday afternoon says the news of gas prices going down is a blessing.

He says he just bought a brand new boat, and says a lower price at the pump is definitely going to help, at least a little bit. He's just glad they aren't going up.

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