Valley Gas Prices Are Headed Up
Gas prices have been on a steady climb for the past couple months. I get that the summer driving season means higher demand, if the supply is high too, then why the price spike?
By the end of August, according to those in the know, gas prices could surpass the current national high of $2.72 a gallon. When I hit the pump today it cost me a few bucks more to fill up my truck.
Back in 2014 US shale oil production forced the price down to $26 a barrel. However, in December of 2016 OPEC agreed to cut production. That pushed oil prices back up. Now with summer gasoline blends and vacationers hitting the road, the price has continued to climb. The national average for a gallon of gasoline is at its highest since mid-June.
Some relief may be in sight. Just today oil prices fell for the first time in months as it appears the OPEC cuts may be over as production from the Saudi led cartel is reported to be on the rise. That plus the reduced demand into September will hopefully bring some relief.
That like anything else, only time will tell. Until then, it's time to break out the bike.