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CNNMoney reported that a range of factors, including higher oil prices, production cuts and the closing of refineries, have caused gas prices to rise for 32 days in a row, increasing by more than 13 percent during that time.
CNNMoney reported that a range of factors, including higher oil prices, production cuts and the closing of refineries, have caused gas prices to rise for 32 days in a row, increasing by more than 13 percent during that time.
As quoted in the market news:
Two-thirds of the cost of one gallon of gas comes from the price of crude, which has jumped 10% in the last two months, according to the Energy Information Administration. As the U.S. housing market experiences a resurgence, the jobs picture brightens and consumer spending expands, anticipation of higher oil demand is driving up prices. At the same time, fears have ebbed that there would be a protracted slowdown in China’s economy, which would have dampened global demand for oil.
OPEC, the powerful cartel of petroleum exporting countries, is also believed to have cut production by about 1 million barrels a day in the last few months, partly in response to rising oil production elsewhere, notably the United States.
Adding to that, several refineries are either preparing to, or have already, shut down for maintenance before their annual switch to summer gasoline, which is formulated differently.