Gas Prices are still climbing

Prices at the gas pump have been steadily rising since last year. Oil prices rose to 18-month highs. Many analysts think the high gas prices may begin to choke off the recovery. Benchmark crude is about $87 a barrel.

Usually in the summer time gas prices tend to go higher anyway. The average price of a gallon of gas hit almost $2.83, that is almost 80 cents over the prices a year ago.

Last Weds, the president announced some new changes in the energy policy. At first I thought this would drive oil prices down, which of course would then mean that we would be paying cheaper prices at the pump, but this doesn’t seem to be the case. This information gives some more information about why that may be the case.

http://www.csmonitor.com/Money/new-economy/2010/0331/Obama-s-new-offshore-drilling-plan-won-t-cut-gas-prices

The big reason is that the new gas from these wells would take 7 to 10 years to make their way to the gas pumps.

Enjoy your day.

Tagged as: Gas and Oil, Gasoline, Oil Prices