Gas Prices - Why The Increase
Fri, 02 Mar 2018 15:20:33 EST
Motorists are no doubt wondering why gas prices are increasing.
Officials at Gas Buddy dot Com say increases are despite the United States hitting a milestone... producing 10 million barrels per day of oil, the highest level since 1970 and very close to an all-time record.
They say we are apparently the victims of our own success, as U.S. oil exports are at record levels, further draining supply from the U.S. OPEC's production cuts have also removed over five hundred million barrels (1.8 million per day) of supply since the start of 2017. As a result, U.S. oil inventories are down 77 million barrels compared to last year, which has all resulted in pushing oil prices higher, along with a high demand in the United States for gasoline. So far in 2018, the Energy Information Administration says gasoline supplied to the market is up over 7%."
An economic collapse in Venezuela also occurred, which saw 2017 oil exports at their lowest level since 1989. So overall while U.S. supply is up, global supply and inventories are down. Oil is a global commodity and prices are set not just based on what's going on in the U.S., but what's going on globally.
Experts say over the next few weeks, prices are expected to keep creeping up to just shy of $3.00 a gallon.
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