Within the week of Jan 16-22 United States gas prices surpassed their highest level since the fall of 2008. The law of supply and demand is driving the increase as the world consumes more oil and gas supplies haven’t kept pace. Analysts expect gasoline prices to continue upward, and U.S. motorists may pay $4 a gallon this spring. People are likely to be taking out payday cash advance loans just to fill up their gas tanks.
Gas costs going up now
AAA accounts that on January 21, the national average for gas prices was around $3.12 a gallon. The last time gas prices approached that regular was Oct 2008. The gas price really depends on the state gasoline taxes and the region though. About $2.74 was what Salt Lake City averaged. In Honolulu, it seems extremely hard to fill up on $3.58 a gallon without a bank loan. Average gasoline rates have risen 9 percent in the U.S. since Dec. 1, though oil prices fell on January 21. $89.11 was the crude for March delivery. This was the NY Mercantile Exchange price. You will find some nerves that oil speculators have currently. China's plans to cool the economic climate can be hard to fulfill since oil tends to be needed for it.
Recovery harder with gasoline prices
In the world, it’s expected by oil experts that less oil is getting used than is being produced. In fact, there's about 5 million barrels more a day produced. The high gasoline rates are because of the oil speculators. They’re the ones to blame. A way larger United States economy is what is expected. That is what most hopes for anyway. The recovery might be harder with higher gas costs though. Cameron Hanover is an energy consulting firm. This firm explained that another $4 million is spent buying gasoline within the U.S. each time there’s a 1 cent increase in gasoline prices. The regular gas price in the U.S. rose 12 cents in the last month, diverting another $48 million — not good news for those who had already made a budget for their cash until payday.
Seeing 2011
Several have suggested gasoline prices may be going up within the spring. It might be closer to $4 a gallon if that happens. There will be an impact on gas based on supply factors as well as oil speculators. Production could be scaled back within the next few months at gasoline refineries in order to switch to automotive blends for summer. In the spring and summer, there are several more miles that Americans travel. The production of oil could be restricted by the OPEC also in order to keep the upward trend in oil prices going up. Supply also has yet to recuperate from the drilling moratorium within the Gulf of Mexico, which the Energy Information said will cut oil production by about 120,000 barrels a day this year.
Articles cited
CNN Money
money.cnn.com/2011/01/21/markets/gasoline_prices_rising/index.htm
ABC News
abcnews.go.com/Business/wireStory?id=12731383
KING 5
king5.com/news/business/Petroleum-demand-up-gas-prices-could-follow-114364459.html
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