The United States gasoline prices have been fluctuated from $3. 40 a gallon to $3. 60 in the last few months. As of July 20, 2013 the average fuel prices which is nationwide use to be $3. 63 per gallon has rising up from $3. 48 cents a gallon, which was a week apart. The recent rise in gas price have some drivers wondering if the gas price will soon be up to $4. 00 a gallon by the end of this summer. The Crude oil prices have shot up partially because of the political unrest in Egypt.
Since the county is not a major producer, but there is, a concern that there may be a serious violence could result in the Suez Canal that is one of the important routes for oil shipping stop from us. If this happens, the effect of investors will unwind the speculative trades in oil and may cause our gas prices to rise up to a higher cost than what it is now. To me this will be hard to grasp since we depend up gas for all our every day use one way or another. (Wrigley, S, Hess A E. M s, and, Sauter M B, (2013) Gas Prices Expecting another Surge Soon
With the rising price for crude oil and the fall in the U. S. supplies is causing the wholesale prices on gas to rise up sharply and there has not yet been any fully reflect on the retail level yet. The prices at our gas pumps has increase by 7 cents compared to the last week of the national average, which was $3. 55 a gallon may climb 15 to 20 cents higher than the average price now. Only a year ago, the national average cost of gas at the pumps was just $3. 38. “It is getting ugly” (Patrick DeHaan, Senior Analyst for Gas Buddy,(2013) .
This was thought to be because of the political problems in Egypt are what is driving up the crude oil prices, but there also where a sharp drop in oil supplies in the last two weeks. This will be coming during the time when the demand is at its annual peak in July. Egypt is not one of our major oil suppliers, but because of the ongoing political woes that is threaten Middle Eastern shipments. This had been the catalyst behind the reason of why the crude oil prices are rising to 15 cents higher. For Benchmark West Texas, their crude oil has climbed from $1. 26 to $106. 7 for a barrel on the New York mercantile exchange in July. This makes the whole sale price to go from 30 cents to 60 a gallon in some market since June causing a surged of nearly 10 cents to increase to $3. 12 a gallon for mid- August delivery on speculation that the supplies may continue to slide. So topically, our pump prices are going to be about 75 cents higher than what the wholesale levels. This year the gas prices have gyrated for most of this year with the rising average of $3. 39 a gallon from the start in February of 2013, then fell to $3. 47 a gallon in a week.
In some regions, which are the Midwest, there were a disrupted cause by the oil refinery outrages and have extended maintenances, making our prices to surge up to $4. 25 a gallon. Higher Gas Prices Boost Consumer Inflation In market prices, we have huge demand for gas and this makes us to have to pay a higher cost for gas. This would be a big demand in supply, because we need gas to travel, in order to get to and from work. The schools would need gas or diesel in order to be able to operate their buses to pick up our children for school. Our ambulances’ need gas in order to run their ambulances to where ever there is a need of an emergency.
In addition, our airplane needs gas to fly their planes, and trains will need fuel to operate their train, etc. I think that this is the world’s greatest demand for supply and is a steady increase in prices and there is no other way around it in the near future. On US TODAY NEWS WEB SITE http://www. usatoday. com/money/ , Washington Associated Press (AP) in July 16 2013 news report, “stated that the consumer prices has risen 0. 5% in June that most of the increase would be coming in June with a higher price increase at our gas pumps for gas.
The Associated Press (2013) retrieved from http://www.usatoday.com/money/
Weigley, S., Hess A. E.M, and. Sauter, M. B (2013) retrieved from, http://www.usatoday.com/story/money/personalfinance/2013/07/20/states-with-the-most-expensive-gas/2530247/