What’s Driving Gas Prices Up?
Gas has been hovering just over two dollars per gallon this summer, but a recent spike in gas prices has some drivers concerned.
According to Economic Analyst Jeff Bates, prices rose globally over the weekend because of turmoil in the Middle East.
“The recent rise in gas prices is mainly due to the drone attacks that we saw in Saudi Arabia, ” Bates says from his Auburn University Montgomery office.
Many people think that gas prices are detemined by the amount of oil the county imports, but Bates says that is not necessarily true.
In a ten year period from 2005 to 2015, the United States reduced oil imports by nearly half.
“the amount of imported oil is the lowest its been since the 1950’s,” says Bates.
The day after the attack on Saudi Arabia’s oil supply, the price of crude oil rose nearly 15% in a single day.
That was the largest increase in crude oil prices that U.S. has seen in the last 30 years according to Bates.
In the long run, Bates says crude oil prices should stabilize soon.
The price of the winter blend of gas that is being shipped right now is slightly higher that the summer blend that drivers have been buying.
If there is no another attack on oil in the Middle East, and no major natural disasters, we should see stable fuel prices this summer.