Is Domestic Oil Production Set to Rise?

Gas prices fall amid ample supply and decreased driving demand.

The average national price of gas has continued to decrease for 21 straight days.

AAA reported that the national average price for regular unleaded gasoline is $2.27 per gallon (as of Jan. 30), down four cents compared to last week, and down five cents compared to last month, but 47 cents more per gallon year-over-year.

The number of U.S. oil rigs is growing, raising the expectation of increased drilling and a subsequently the expectation of a climb in domestic oil production. More production of U.S. crude oil combined with a decrease in driving demand is behind falling gas prices at the pump.

Hawaii ($3.07) and California ($2.80) continue to post the highest gas price averages in the nation.

South Carolina ($2.04) and Alabama ($2.07) boast the lowest gas price averages.

Oil Market Dynamics
AAA noted that end of month surveys of OPEC production cuts are expected tomorrow and traders will be paying close attention to the cartel’s agreement compliance. Market watchers will also keep a close eye on U.S. production and the impact it has on supply and demand.

 

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