Monday, March 22, 2010
Gas prices expected to flatten
Even though the price of gas has risen an average of 86 cents above the price of a gallon a year ago, the increase has been predicted to slow down because the OPEC is not expected to stop overproducing at these prices. While the demand for gasoline tends to rise in the summer (although expected to be dampened this summer by the economic conditions and the continuous high levels of unemployment throughout the nation), the demand for crude oil decreases because of the lack of requirement for heating houses.
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3 comments:
Interesting, although there has been an increase, less than $3 a gallon is so nice compared to when it was almost $5! What I want to know is why diesel is more expensive than gasoline right now, as it is less refined and cheaper to produce.
I thought it was interesting to find out that OPEC is purposely oversupplying oil while the prices are high. This fact, coupled with knowing that demand for oil typically decreases in the summer months, should really help prices decrease in the future!
I was curious about your question about why diesel is more expensive than gasoline right now so I did some reason and found out some interesting things. Oil barrels can be broken down into several different products, ranging from heating oil, to gasoline and from kerosene to diesel. During the winter time the demand for heating oil is high, so a bigger portion of crude oil is given to it, leaving diesel supply down and having high diesel prices as a result. There have also been several regulations to how diesel is supposed to be produced.
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