You’re bound to have noticed that gas prices, which were at an unprecedented low a couple of months ago, are now on the rise again. In fact, they’ve been on the rise ever since the general price for crude oil has gone up to as much as $60.00 per barrel.
Why the Rise?
If you’re like most American’s, you’re probably asking yourself: What on earth is going on with gas prices lately? Not too long ago, they were at an unprecedented low nationwide. Now, over the past month, they’ve been on a steady climb. We reported on the drop in gas prices back in January in our article, “Why The Drop in Gas Prices?” The amazing deals we were seeing at the pump the first two months of this year had two primary forces behind them: domestic drilling and fracking. Domestic oil drilling and fracking increased crude oil stores in the U.S. to surplus levels.
Now, gas prices have been on a steady rise for about a month, closer to the prices we used to see at the pump a year ago. The national average for regular unleaded gas is now up to $2.63 per gallon. So why have gas prices increased? Well, it would seem that an increase in price would be due to supply and demand. While many oil companies have scaled back on drilling since the drastic drop in prices, some experts suggest that this alone isn’t the reason for the price increase. Instead, another theory points to the uncertainty associated with the ever-volatile conditions in the Middle East.
Some suggest that tension in Iraq and other neighboring countries have caused the cost of crude oil to go up worldwide. And as the price increases per barrel so to do gas prices, of course. What could this mean for the near future? Well, we might see a similar cycle reoccur as fracking efforts increase again domestically in order to counteract foreign pricing restrictions. Whatever the cause may have been, the outlook for the next several months appears positive, with gas prices plateauing and even dropping a small amount, according to industry experts.