Created: May 26, 2020 06:47 PM
ALBUQUERQUE, N.M. — Prices at the pump plummeted after oil prices hit historical lows a few months ago, but now there are signs of improvement.
Gas prices are slowly beginning to rise, which could be a good sign for the state's oil and gas industry.
"We've seen gas prices creep up a little bit. We've seen that due to two big reasons: One, oil prices themselves are creeping up and the second is that the industry itself is fairly seasonal, meaning that we typically see rises during the summer driving season," said UNM financial professor, Dr. Reilly White.
"About nine million barrels a day is what we consume as a county typically, and consumption right now has recovered a bit, but we're still about 30 percent below where we were at this time last year," Dr. White said.
As the state begins easing restrictions, oil producers are preparing for people to travel more and possibly spend more, which could help New Mexico's bottom line.
"The oil industry is cautiously optimistic, but then again a second wave, something else, could derail a lot of these gains we've seen so far," White added.
Dr. White is also urging caution. He said it will be crucial to watch how this pandemic plays out in the next three to six months.
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