Gas prices are higher than ever! - Crowley
One of the most discussed issues today is gas prices, but more specifically, the roller coaster the prices have been on. The answer is simple, and no it is not because the government is trying to torture the people of America.
“My administration will take new executive actions to better analyze and investigate trading activities in energy markets and more quickly implement the tough consumer protections under Wall Street reform. None of these steps by themselves will bring gas prices down overnight, but it will prevent market manipulation and make sure we're looking out for American consumers,” said President Obama in a recent statement.
Like the President said, gas prices can’t come down over night. They peaked in March and are still high, but in the next few weeks, the cost of filling up a car is supposedly going to come down.
“Gas prices have peaked and are likely to head lower in the next few weeks… Wholesale prices are down more than 25 cents since they peaked in late March,” reported Richard Davies for ABC News.
The high demand for oil isn’t the only reason for the high prices. The world is not running out of energy sources, but expanding for oil is risky mostly due to the political instability in the Middle East.
“If it were not for some of the Iranian oil off the market because of sanctions and the fear of supply interruptions, the price could be lower,” said James Williams, an energy economist at WTRG Economics.
The rough relationship between the US and the Middle East also does not help with the prices. The disagreements within their own country and the arguments between Iran and the US are not bringing the prices down anytime soon.
“The tensions and sanctions have contributed to a decline in production. Iran’s output fell to 3.35 million barrels in March, down from 3.46 million in January, according to an Organization of the Petroleum Countries report,” reported Myra Saefong for MarketWatch.
Crude oil, better known as petroleum, also plays a big role in the increase of gas prices. If demand for the crude oil is high, then the gas prices will go down, but if the demand is low, then the prices will go up.
“U.S. gas prices are largely determined by global crude oil prices, which depend on a widening and shifting array of factors half a world away: economic sanctions on Iran; deepwater drilling off Brazil; spare oil capacity in Saudi Arabia; auto use in China; less nuclear power in Japan. So oil rigs may be hopping in North Dakota, but what happens in the Strait of Hormuz will likely have more impact on prices at the local gas station — even though the U.S. doesn't import a single gallon from Iran,” reported Wendy Koch for USA Today.
Prices have hit their peak in recent weeks, but within the next month, they should be dropping little by little. Obviously the problem cannot be solved as quickly as the people of America want, but there has been some progress.
Fixing the debates in the Middle East and keeping the crude oil demand high are not going to be easy and those two solutions aren’t the only ways to bring the prices down, but since prices hit their highest peak in 2009, things can only get better from here.