The average price of gasoline continues to creep upward and is about 1.8 cents a gallon higher now than it was two weeks ago, according to the national Lundberg Survey of fuel prices.
The U.S. average price for regular gasoline, according to the survey released Sunday, is $1.96 a gallon.
Even though there is no job growth and people are losing jobs, and the global economy is headed toward a depression, oil brokers and traders seemed to ignore the daily doses of bad financial news. Benchmark crude closed above $40 every day of the week for the first time in a month.
The federal government said crude stocks fell by 700,000 barrels for the week ended Feb. 27, and analysts noted that OPEC could call for more production cuts at its meeting on March 15.
“OPEC seems to have its act together,” said Michael Lynch, president of Strategic Energy and Economic Research. “They’re bringing inventories down, and that’s putting a floor on the market.”
Does this mean that gas prices will begin to soar to $3-4 a gallon? No, but they will most likely level out around 2 dollars. The global demand for oil is just not there for it to be in panic mode. I look for OPEC to possibly dissolve in the upcoming years.
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