Get Some Gas Today: Prices May Surge Soon

Oil prices hit 15-month highs this week and supply is down. Guess what that means?

Get Some Gas Today: Prices May Surge Soon Photo (cc) by coconut wireless

The national average for gas is 14 cents higher than a year ago. It’s likely to go higher still.

Rising crude prices and declining U.S. supply are pushing wholesale prices up rapidly, and that hasn’t been fully reflected at the pump yet, USA Today says.

We could be headed for a 15-cent increase in the next two weeks, according to expert predictions.

“First and foremost, the political problems in Egypt are driving crude oil prices, but there has also been a sharp drop in oil supplies the past two weeks,” senior analyst Patrick DeHaan told the paper. “This is coming at a time when demand is at its annual July peak.”

U.S. supply is down even as our production is at a 20-year peak, says. We’re generating 7.4 million barrels of oil a day, the highest since the start of 1992. But as global demand has increased, the industry has recently become more efficient at shipping oil from the heartland to the coasts for export.

That’s pushing the price of our oil closer to the global price, says, which means more pain at the pump.

The effect is likely to hit the Midwest hard and fast, as it did earlier this year when prices reached $4.25 a gallon there, USA Today says. Michigan, Indiana and Ohio are seeing major hikes already — 16 cents in the past week.

What can you do about it? Check out our recent post, How to Increase Your Mileage by 70 Percent.

Brandon Ballenger
Brandon Ballenger @btballenger
I'm a freelance journalist living in South Florida. If I'm not writing, I'm playing video games or at the beach. My favorite spice is oregano, and I thought you should know. I ... More


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