As oil levels are beginning to drop drastically Americans are taking back to the open road. But that won’t last much longer especially as OPEC begins to cut their production. Being the largest supplier of crude oil, it will significantly affect the market in general and overwhelmingly increase prices, within the next few days.
This happens every year. This isn’t something new. In fact it is surprisingly late this year. Oil will rise usually in October or November and increase substantially, due to the increase in demand. Due to the financial crisis and new innovation looking to replace gas, it is reaching record lows and becoming a little less gouging on the U.S. consumers.
What does this mean for the consumer? This means we are facing more steep prices all the way into and most likely through summer. Even though oil prices are back down it is only temporary. It is most likely that oil will begin to drive back up now that consumers are used to spending so little for gas. It’s great to be an oil tycoon, isn’t it?
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1 comments:
I agree. I think that cheap oil is only temporary. Demand may be down but OPEC is cutting supply so when demand does resume there will not be enough supply which will lead to higher prices.
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