04-11-2018, 11:30 AM
4-1-2018
Here comes the high gas prices promised back in February post
Gas prices could jump 14% this summer, according to government estimate
The price of oil has climbed because of efforts by OPEC and Russia. Brent crude, the global benchmark, surged 3.5% on Tuesday to $71.04 a barrel, the highest since late 2014. That’s already above the EIA forecast of $63 for this summer, suggesting gas prices could go even higher. Brent crude averaged just $51 last summer.
Drivers in California, Oregon, Nevada, Washington State, Hawaii and Alaska already pay more than $3 per gallon, according to AAA. California’s average gas price has jumped to $3.52, compared with $2.99 a year ago.
After crashing to just $26 a barrel in early 2016, crude oil has more than doubled in price. Supply in the United States is very strong. Production of crude recently hit record high because of the shale oil boom.
But foreign oil supply is down, largely because of OPEC’s efforts to boost prices by curbing production. Saudi Arabia-led OPEC and Russia reached an agreement in late 2016 to pump less oil.
Saudi Arabia decided last year to slash shipments of oil to the United States, the market watched most closely by oil traders. American imports of Saudi crude declined 14% last year to the lowest since 1988, according to the EIA.
At the same time, the United States is shipping record amounts of oil overseas since Congress lifted a ban on most exports in 2015. US oil exports have nearly quadrupled since then.
Here comes the high gas prices promised back in February post
Gas prices could jump 14% this summer, according to government estimate
The price of oil has climbed because of efforts by OPEC and Russia. Brent crude, the global benchmark, surged 3.5% on Tuesday to $71.04 a barrel, the highest since late 2014. That’s already above the EIA forecast of $63 for this summer, suggesting gas prices could go even higher. Brent crude averaged just $51 last summer.
Drivers in California, Oregon, Nevada, Washington State, Hawaii and Alaska already pay more than $3 per gallon, according to AAA. California’s average gas price has jumped to $3.52, compared with $2.99 a year ago.
After crashing to just $26 a barrel in early 2016, crude oil has more than doubled in price. Supply in the United States is very strong. Production of crude recently hit record high because of the shale oil boom.
But foreign oil supply is down, largely because of OPEC’s efforts to boost prices by curbing production. Saudi Arabia-led OPEC and Russia reached an agreement in late 2016 to pump less oil.
Saudi Arabia decided last year to slash shipments of oil to the United States, the market watched most closely by oil traders. American imports of Saudi crude declined 14% last year to the lowest since 1988, according to the EIA.
At the same time, the United States is shipping record amounts of oil overseas since Congress lifted a ban on most exports in 2015. US oil exports have nearly quadrupled since then.