Gas prices in the USA have raised to the $2.20 mark. It is up thirteen cents over past two weeks. This elevation is the first price rise for the past nine months. Now there is a question that disturb everyone: Is the party over?
As the price of gasoline and other fuels is triggered by the crude prices, it is hard to predict anything certain. Production in the USA and other oil-producing countries is increasing meanwhile their main purchasers such as Europe and Japan are experiencing difficulties, which affect their demands for oil. Probably they will stay at the same level, but economists are not certain about the increase in demand. This would have a huge impact on the oil market. Traders are always very responsive to the oil production and every first occurrence of production reducing pushes them to buy. At the same time, each new sign of rising supplies pulls the prices down.
None of this helps to foretell a certain fuel price neither in the USA nor in other countries. Experts’ opinions differ. Some say that oil prices will rise and it would entail certain consequences. USA oil companies have already announces reductions in force and budget cuttings in the billions of dollars. That would have a huge impact on the country’s economics in general and oil market in particular.
Nevertheless, other experts are much more optimistic. They predict that oil price will fall as still there are many rigs and companies will center on more rich spots. In addition, equipment and expertise spendings are going down. All previously mentioned means oil companies may be able to keep fuel prices on appropriate level.