ASU professor talks historic oil prices and what it means for Arizona gas prices

The stock market is reacting to plunging oil prices as oil futures plunge below zero for the first time ever.

It fell as low as $-37. The historic decline in U.S. crude prices raised concerns about the economic damage from the coronavirus shutdowns.

Because of this fallout, we are seeing record low gas prices everywhere, so why not in Arizona?

“60% of oil is used for transportation and people aren't driving," says ASU Professor Andrew Inkpen.

He's been keeping an eye on the oil markets for the last 25 years and he knows that Arizona prices lag behind states in the Midwest and East Coast.

RELATED: Oil prices crash 305% to -$36.73 a barrel

“What’s happening in the Midwest is probably Canadian oil that’s been dumped on to the market and ending up in refineries in the Midwest and very low, very low cost to the refineries and they are getting it into their system,” Inkpen explained.

But he knows that the bottom out prices are coming to the desert soon.

“I would guess that in a couple of weeks it’ll happen here too," he predicts.

The idea of supply and demand is ultimately why the oil market collapsed into the red for the first time Monday.

“The problem is nobody wants that oil. The refineries don’t need it. The people with storage don’t have, you know, are running out of storage supply for it. So you end up with these very strange sort of trades where you almost have to pay somebody to take your oil from you,” Inkpen said.