Don’t start celebrating quite yet about gas prices since the worst is yet to come. Although prices slipped a bit this week, this trend might not last.
In fact, it might only get worse from here on out.
Darien Daily Voice reports that everything hinges on a decision expected to come June 22nd. OPEC announced whether or not they will decide to lift their supply limits imposed in 2016. They hammered out the initial deal to supposedly balance global gas prices.
So, if they decide to revoke them, prices could shoot up at the pump due to increased global demand. Which, as you already heard, is to blame for prices already gracing our pumps.
Which, if you think about it, kinda sucks since crude oil prices continue to shrink week after week. Back in the day, gas prices soared to over $4 a gallon because barrels sold at over $150 a pop. Now, they’re way below half the price ($65.52 a barrel) and our gas prices barely reflect that.
However, officials pin the high prices on increased global demand and that summer blend is typically more expensive than their winter blend.
But, now they found a new horse to bet on… this global stabilization agreement. Officials say:
“That agreement, an attempt to balance the global market, expires at year’s end. However, cartel members may decide to lift those limits before the agreement expires.”
Apparently this deal came about after gas prices tumbled after reaching a global high in 2016. The overall goal was to prop up prices by removing almost 2% of the global crude supply.
But, now that there’s further instability around the world (Iran, Venezuela…) those might become reasons to accelerate prices.
So, that’s worth paying attention to in the coming weeks. However, anger over gas prices continue to rise across the nation, which means people will start buttoning up their wallets. Already, over 80 percent of Americans say they pay too much for gas as is.
They believe $3 a gallon is way too much.
As of now, gas prices tumbled 3 cents nationally, but by 1 cent here in CT. Our statewide average fell to $3.14 with no promise of shrinking under $3 anytime soon.
Do you think we’ll ever see prices at $2 again? Why do you think gas prices skyrocketed nearly a dollar since last year? Do you really think it’s because of increased global demand and all this “summer/winter blend” stuff? Also, what happened to the gas America started putting out? Wasn’t there a huge increase in our output recently, like we pumped out like 10 million barrels a day?
Oh, right, we did.
What the heck is going on?
Let’s throw some conspiracy theories around. Who knows, you might actually be onto something since it looks like anything goes in terms of excuses for inflating prices at the pump nowadays.