JACKSON, Miss.–Some families in Mississippi are saving a lot right now because of much lower gas prices. The state average for Wednesday morning was $1.94. While that’s helping police departments, school districts and anyone who pays for transportation, there are also people who are being hurt by the low prices.
“Domestically some states like Louisiana, Texas, Oklahoma and others have made their budget forecast on royalties at $80 a barrel,” said Don Redman, spokesperson for AAA of Mississippi.
He said the low oil prices could also affect national economies and could actually serve to weaken Russia.
“I think you’re gonna see some countries really get hurt out of this. We’re already seeing Venezuela is really rocking.”
THE DON REDMAN INTERVIEW
He said oil prices right now are in the $45 per barrel range and many countries have made their budgets, like some states, based on $100 per barrel oil prices.
With Congress set to vote on the Keystone XL pipeline, there is the possibility that oil prices could go lower, especially domestically.
“The dirty little secret is that with or without that pipeline that oil is going to make the market, whether it’s by pipeline or by rail, but it is going to get to the market.”