Gas Prices

 

 

The increase in crude oil prices (at $100 per barrel) is primarily responsible for the recent rise in our gas prices.

World supply has gone down due to geo-political instability and decreased production in Iraq, Venezuela, Saudi Arabia and Nigeria. 

Other Middle Eastern countries in OPEC and re-thinking their supply patterns to western countries.  OPEC can suddenly drop supply and drive up prices.  A cartel may not be the most stable economic model.

The majority of oil refineries in our country are in the southeastern United States, adding some transportation expenses to deliver to the remainder the U.S.

Oil company mergers have meant there are fewer independent oil companies and fewer oil companies overall, reducing choices and competition.

World demand for crude oil and gas has increased with population growth and cultural shifts with increased reliance on oil and gas.

Natural supply of oil is nearing its peak and countries haven’t been replacing oil dependence with alternative fuels fast enough to replace it.

*fueleconomy.com
*buzzle.com
*Craig Dahl Research
*Newsday

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