$3 gas? Pump prices heading back up after oil deals
$3 gas? Pump prices heading back up after oil deals
Nathan Bomey USA TODAY
After hitting lows earlier this year, gasoline prices are on the march upward again and are poised to approach $3 per gallon in parts of the country in early next year following multiple deals to cut oil production, analysts said.
Oil prices have jumped well above $50 per barrel after the Organization of the Petroleum Exporting Countries and several non-member states agreed to slash oil output, pointing to higher costs for U.S. motorists.
Fuel typically slumps during the low-demand winter months, but the opposite has occurred since OPEC’s output-cutting deal Nov. 30 assured investors that oil's global glut would soon ease. After non-OPEC countries, including Russia, struck a deal Saturday to slash nearly 600,000 barrels per day, gas prices continued their upward trajectory.
Gas averaged $2.21 per gallon nationwide Monday morning, according to GasBuddy. That was up 3.8 cents from November's average and up 19.8 cents from a year ago.
But if it heads to $3 a gallon, it could have major impact on family budgets. For those driving 12,000 miles a year, the difference can add up. Using last month's average of 24.9 miles per gallon among new cars, as found by the University of Michigan Transportation Research Institute, the additional cost would be $381 at today's gas prices compared to $3 a gallon.
READ MORE: http://www.msn.com/en-us/money/markets/dol...
Nathan Bomey USA TODAY
After hitting lows earlier this year, gasoline prices are on the march upward again and are poised to approach $3 per gallon in parts of the country in early next year following multiple deals to cut oil production, analysts said.
Oil prices have jumped well above $50 per barrel after the Organization of the Petroleum Exporting Countries and several non-member states agreed to slash oil output, pointing to higher costs for U.S. motorists.
Fuel typically slumps during the low-demand winter months, but the opposite has occurred since OPEC’s output-cutting deal Nov. 30 assured investors that oil's global glut would soon ease. After non-OPEC countries, including Russia, struck a deal Saturday to slash nearly 600,000 barrels per day, gas prices continued their upward trajectory.
Gas averaged $2.21 per gallon nationwide Monday morning, according to GasBuddy. That was up 3.8 cents from November's average and up 19.8 cents from a year ago.
But if it heads to $3 a gallon, it could have major impact on family budgets. For those driving 12,000 miles a year, the difference can add up. Using last month's average of 24.9 miles per gallon among new cars, as found by the University of Michigan Transportation Research Institute, the additional cost would be $381 at today's gas prices compared to $3 a gallon.
READ MORE: http://www.msn.com/en-us/money/markets/dol...
Good news for the global warming theorists.