Dave Vang, professor of finance at the University of St. Thomas Opus College of Business, spoke with KSTP about the recent spike in Minnesota gas prices amid escalating tensions in the Middle East. Vang said oil is priced on a global market, meaning international conflicts can affect prices in Minnesota, with drivers potentially seeing increases of up to 20 cents per gallon depending on how long tensions continue.
From the story:
“Oil is priced internationally. We’d like to say that we’re energy sufficient and self-sufficient and so forth, but in reality, we’re buying oil from wherever a place is logistically close to us, so basically, any event anywhere in the world kind of affects the world price of oil,” Vang explained.
Vang said drivers could see prices rise by as much as 20 cents per gallon, depending on how long tensions overseas last.
He also says recent changes in U.S. oil sourcing could help soften larger spikes. According to Vang, oil that previously went to other countries is now being redirected to the United States, helping stabilize supply in this hemisphere.