I am glad they are finally drilling like Bush proposed. They have postponed this for 18 years. Question: Why has gas risen 60 cents/gal. in the past three months? Approx. 30% in my area.
why have gas prices increased by 30% in your area recently ?
demand for gasoline is skyrocketing because of all those extenda‘ cab F-150s folks been buying. Folks drives them trucks like 80 on the highway burning fuel like a crackwhore.
signed
mr frugality
Not surprising, we have dramatically cut back on the number of refineries we have in this country. The number of working refineries I have in my head is so small that it can’t be right! So its likely that demand for refined gasoline is putting pressure on supply. The futures market is likely also still resisting lowering prices. I think the low number of refineries is the big issue. Oil straight out of the ground doesn’t just turn into gasoline. The good future for oil has only been since Trump has taken office give it time.
“Why has gas risen 60 cents/gal. in the past three months?”
Higher global demand, and restrictions on global supply by OPEC, Russia and a collapsing Venezuela. They are the big mid-term factors, that influence the most important near-term factor - how much inventory is on hand. Inventory of gasoline can vary independently of inventory of crude oil, in the short-term (weeks and months).
Growing US production is more of a mutli-year long-term factor on prices. The bottom line with that, is that market prices based on natural supply and demand will increasingly dominate over OPEC’s shrinking ability to control prices by throttling their production. It means that the long term average price will tend to gravitate around the “shale band” of $45-$65/barrel, instead of the artificially constrained OPEC price around $100/barrel.
Demand is up?
“Why has gas risen 60 cents/gal. in the past three months?”
Because the petroleum industry does a lot more than just use the money to sell more gas. It is used to support countries to keep them from going broke and going next door to look for food, it re-invests and replaces employment all over the world to include the US, and is used to do interesting things like block the production of huge shale oil deposits in Russian to keep them off the market. And that takes capitol. It also puts oil producing countries into financial binds like Venezuela. Oil is a very useful and used commodity. Some of it is good and.....
rwood
One of the reasons is that the US dollar has been declining in value vs. other currencies and that oil is sold with a US dollar standard.
#9 If you live in California, any price increase is due to the democrats and pensions.