Gas Prices Stabilize

AS THE UNITED STATES AND IRAN WORK TO FINALIZE A DEAL TO END OF THE CONFLICT IN THE MIDDLE EAST. DRIVERS ARE FEELING SOME RELIEF AT THE GAS PUMP AAA SAYS GAS PRICES STAYED BELOW $4 FOR THE SECOND WEEK IN A ROW IN FLORIDA, THE AVERAGE PRICE FOR A GALLON OF GAS IS $3.81 THAT'S NEARLY $0.20 CHEAPER THAN IT WAS ONE MONTH AGO. COLLIER AND HENDRY COUNTIES ARE STILL SEEING SOME OF THE HIGHEST PRICES THROUGHOUT THE STATE. BUT PRICES ARE EXPECTED TO DROP EVEN MORE HEADING INTO THE HOLIDAY WEEKEND. WGCUS EILEEN KELLY LOOKS IT. HOW WHEN IT COMES TO STABLE PRICES, IT STARTS IN THE MIDDLE EAST. >> THE UNITED STATES IS LARGELY ENERGY INDEPENDENT, PRODUCING SOME 14 MILLION BARRELS OF OIL A DAY AND IMPORTING IF NECESSARY IN THE PEAK USE SUMMER MONTHS FROM CANADA IN VENEZUELA RIGHT NOW THE U.S. IS IMPORTING ABOUT 3 MILLION BARRELS A DAY AND EVEN SMALLER AMOUNT OF CRUDE COMES FROM THE PERSIAN GULF. SO WHY ARE AMERICAN PRICES TIED TO THE WAR IN IRAN WHICH SENT PRICES SKYROCKETING? I SPOKE WITH DOCTOR TOM SAYING HE SAYS ASSISTANT PROFESSOR, A PROFESSIONAL PRACTICE AND ENERGY FINANCE AT TEXAS CHRISTIAN UNIVERSITY. I ASKED HIM TO HELP US UNDERSTAND WHY US PRICES STILL REMAIN HIGH. SIMPLY PUT OIL, HE SAID IS A GLOBALLY TRADED COMMODITY AND PRICES ARE DICTATED BY WORLDWIDE SUPPLY. ANY DISRUPTION LIKE THE WAR ACROSS THE GLOBE DICTATES PRICES AT THE PUMP FOR AMERICANS. WE END UP IMPORTING HEAVY OIL FROM CANADA. >> FROM VENEZUELA AND WE EXPORT SOME OF THAT LIGHTER WILL BECAUSE WE JUST CAN'T USE IT AT A REFINERY. SO IT'S A VERY WEIRD DYNAMIC. BUT THE POINT IS THE IMPORTED OIL IS PRICED AT THE GLOBAL PRICE LEVEL, WHICH HAS BEEN CONSIDERABLY HIGHER. IT AND THE WTI, THE U.S. GRAIL. >> AND WHILE GAS PRICES HAVE DROPPED, THEY ARE STILL CONSIDERABLY HIGHER. THEN A YEAR AGO AT THIS TIME AND OIL IS TRADING AT $70 A BARREL DOWN FROM $119 WHEN THE WAR STARTED. SO SHOULDN'T PRICES DROPPED TO PREWAR LEVELS THAT EVEN THOUGH PRICES TO SKYROCKET THE OPPOSITE A FREE FALL NEVER HAPPENS, BUT ALL IS NOT LOST, AT LEAST FOR NOW. THANKS TO THE VERY FRAGILE CEASE-FIRE IN PLACE WITH IRAN, WHICH IS OPEN THE STRAIT OF HORMUZ. >> SO ONE OF THE BIG ISSUES IS ALWAYS BEEN, YOU KNOW, THE THE STATEMENTS MADE WELL, THE STRAIT OF HORMUZ IS OPEN AND WE FIND IT IS NOT REALLY OPEN. WELL THERE THERE ARE COMPANIES THAT ACTUALLY ARE THEIR TANKER TRACKERS. ONE OF IN PARTICULAR KPLR KEPLER AND THEY HAVE CONFIRMED THAT THERE ARE OIL TANKERS FLOWING THROUGH THE STRAIT OF HORMUZ. ABOUT 13 A DAY IS WHAT THEY'RE SAYING. PREWAR. YOU HAD MORE LIKE 100 A DAY, BUT STILL THAT THAT IDEA, EILEEN, THAT WE KNOW THERE'S SOME OIL COMING OUT OF THERE THAT LOOSENS THE SUPPLY DEMAND SITUATION GLOBALLY. >> SO I ASKED DOCTOR SAYING WHAT CONSUMERS SHOULD EXPECT FOR THE FORESEEABLE FUTURE. >> SO RIGHT NOW THINGS ARE OPTIMISTIC. >> THAT WE WILL GET TO A MORE PERMANENT PEACE. >> AND WE'LL GET TO A NEGOTIATION WHERE EVERYTHING IS WORKED OUT AND THINGS ARE BACK TO NORMAL. BUT KIND OF TO YOUR POINT, I THINK WE DON'T KNOW IF THAT WILL HOLD, YOU KNOW, EVERY DAY SEEMS TO BRING A NEW SITUATION. THERE ARE STILL ATTACKS GOING ON. SO YES, MORE OIL IS FLOWING. THAT'S GREAT. BUT WILL IT CONTINUE THAT? UNFORTUNATELY, THAT QUESTION IS STILL UP IN THE AIR. >> WGCU NEWS. THIS IS DIVING. KELLY.