Price at the pump is definitely affected by price of the barrel in the international market. While experts are all saying that the rise in pump prices are normal as we enter summer, those claims come with a disclaimer of the effect the international oil market price could have.
Price of oil hit a new six-month high at $63 a barrel. This is ahead of OPEC talks. Economic recovery is seen to drive demand higher and, as an effect, prices will be pushed upward. New York pegs the price of light sweet crude for delivery in July at $63.45 a barrel matching its price in November of last year.
“The oil market continues to react to any semblance of good economic news partly because of the fears of inflation expectations in the backdrop of a recovery but also because an economic recovery and a surge in global oil demand will be hard pressed to be met by supply because of the dramatic and continuing drop in oil investment,” said Phil Flynn of Alaron Trading.
Still, experts are not expecting for the price of gas to spike up to another round of all-time highs citing that a four-dollar gallon is still highly unlikely to happen again discounting any other real drastic events that would affect the global market.
Source: AFP
Related posts:
Tags: Automotives, Gas, Prices