Why are gas prices spiking this week?

Penn Live

Gas prices continue to move upward in the midstate – the average price increased 10 cents in one week from $1.89 on March 7 to $1.99 on March 14.

“The cheapest gas prices of the year are now solidly behind us as the national average will soon again hit $2,” said Patrick DeHaan, senior petroleum analyst for GasBuddy.  

“The current upward trend is an unfortunate one that we witness every year, but the sudden jolt this time around has been enhanced by a 45 percent jump in the price of crude oil in the last month. The large jump in crude oil prices comes amidst record oil inventories, yet it’s the mere threat that oil supply could be slashed from OPEC and non-OPEC countries at the same time oil demand is growing driving prices higher. And while oil inventories sound staggering at over 500 million barrels, that number represents 26 days of U.S. oil consumption, a rise of three days versus inventories a year ago. At the end of the day, we expect this rally in gasoline prices to run for another month or two before stalling out. Perhaps the best news? Motorists still could see the cheapest average summer gasoline prices in over a decade,” DeHaan said.

According to the AAA Daily Fuel Gauge Report the national average gas price has increased for 18 of the past 20 days. The increases are fueled by “a decline in gasoline supplies, relatively strong demand and continued refinery maintenance.”

http://www.pennlive.com/life/2016/03/gas_prices_increase_10_cents_i.html

4 thoughts on “Why are gas prices spiking this week?

  1. I believe what they are doing is stashing oil reserves, and lying about it. Now there is a fresh need for oil, so therefore the three card monte. They have already doubled down on the inventory fraud, now we have billions of gallons that have been hidden or stashed, now they are just playing a kind of derivatives three card monte, pretending there is a need.

    There has to be a huge glut of oil right now, because all of the guys that I know that used to haul oil from the fields, don’t have jobs anymore.

    Not only that, but North Dakota cities that used to be thriving from oil truck drivers and personnel are shitting their pants right now, because all of these people aren’t there anymore. See article below

    http://rapidcityjournal.com/business/nd-texas-housing-markets-hurt-by-oil-slump/article_5f5b393d-577a-55db-9473-258ab985fcda.html

  2. Easy question. Because there’s a glut on the market.

    See ‘Communist Logic 101’ to decipher that one.

  3. Spring break!……the oil company vultures never miss a chance to beat a coin out of the consumers. this happens every year….you think they would skip this year since the people with money are in the futures hard(oil companies)
    and stand to clean up handsomely when the oil glut goes away.

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