Why aren't gas prices going down this fall?

Thursday, October 18, 2018
 | 
Chris Woodward (OneNewsNow.com)

gasoline pumpsIt is the time of year when gas prices tend to come down, but that has not been the case for many parts of the United States.

The American Automobile Association (AAA) attributes the problem to fuel disruptions on the West Coast and in the Southeast, where Hurricane Michael made landfall in Florida.

Meanwhile, Patrick DeHaan of GasBuddy.com contends that America has been in this long-term trend of higher oil prices, and that is something that the Organization of the Petroleum Exporting Countries (OPEC) has been doing the last 20-plus months.

"Back in 2016, they decided that the price of oil was too low,” DeHaan pointed out. “They decided to cut oil production, and ever since then, the balance of supply and demand has been tipped, and demand has been eroding the supply.”

He made some other observations to note.

“And also keep in mind that OPEC is producing less crude oil," DeHaan added. "So, we've had this trend now for close to two years. Oil prices have been slowly rising and have continued to go up for a good portion of this year – and that's why you're not seeing a whole lot of relief at the pump this fall."

The energy expert believes that Americans may see a little bit of relief in the near short-term – amid concerns over a slowing global economy.

"Wednesday, oil prices fell under $70 a barrel," DeHaan announced. "So, we may see a little bit of relief now, but with the Saudi situation looming over us, expect perhaps more pain next spring and summer."

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