ST. LOUIS (KMOX) - The price of gas in St. Louis could drop to below $2 per gallon because of the coronavirus outbreak, according to national security consultant for CBS Col. Jeff McCausland.
He explained on the Charlie Brennan and Amy Marxkors Show this week that it's because of simple supply and demand. China – which he says is the world's largest importer of oil – announced it will be cutting its import of oil by 1 million barrels per day. That means there will be a large increase in supply for the rest of the world. And as the supply grows more than the demand, the price goes down.
According to GasPrices.AAA.com, the average price of regular gas in Missouri has dropped more than 10 cents in the last month – that's nearly the same for the national price.
Take a listen to their full conversation with Col. McCausland here:
BEIJING (AP) — Global business is catching a chill from China's virus outbreak.
Mink breeders in Denmark called off a fur auction because Chinese buyers can’t attend due to travel curbs imposed to contain the disease.
Airlines have canceled 25,000 flights to and within China after ticket sales collapsed, according to travel data provider OAG. General Motors Co. and other automakers are telling employees to limit travel to China, their biggest market.
On Tuesday, the Chinese gambling enclave of Macau announced it was closing casinos for two weeks as a precaution. The territory is a big moneymaker for U.S. casino operators Wynn Resorts Ltd. and Las Vegas Sands Corp.
Hyundai Motors, meanwhile, said it is suspending production in South Korea due to disruptions in the supply of parts as a result of the outbreak. It said it is seeking alternative suppliers in other regions.
Global companies increasingly rely on China, the world's No. 2 economy, as a major buyer of food, cars, movie tickets and other goods. But that has left them more exposed than ever to the pain of its latest abrupt slump.