Americans reeling from all the grim economic news lately can add one more item to the list — surging oil prices.
Analysts say the recent rally that’s sent U.S. crude prices up 20% since the start of October has been driven by a broad range of factors, from a weaker dollar to an easing supply glut and ongoing tension in the Middle East.
And if that continues, it could add up to a greater burden for drivers, in the form of higher gas prices.
The U.S. Energy Information Administration said last month that U.S. prices would average $3.52 per gallon this year before dropping to $3.43 in 2012. But that all could change if oil continues to trend higher.
U.S. crude prices are within spitting distance of $100 a barrel — a level not seen since mid-July, when the national average for a gallon of gas was around $3.69, according to motorist group AAA.
(Source: CNN Money)
Join the official YWN WhatsApp status
One Response
1. The decline in the dollar is important but will reverse itself as the Euro collapses.
2. Middle East tension predate the invention of oil as a fuel. If anything, this should work to lower prices since Libya and Iraq are stabilizing and increasing production, so unless there is a war (especially one involving Iran) there should be negative pressure on prices.
3. President Obama is working hard on supply issues. He recently acted to divert a tremendous amount of Canadian oil to China so they can have affordable oil, rather than the USA. However unless the Republicans snatch defeat from the jaws victory, he’s only a temporary problem.