People Question Gas Price Increase
The average price of a gallon of gas went up 13 cents this past week.
Iowa Department of Agriculture analyst, Harold Hommes, says the increase is a little puzzling.
“We are seeing kind of a bit of a dip in inventories. A little bit unexpected because crude oil production is up at the moment…as of last week U-S crude oil production hit seven-point-five million barrels a day, and we haven’t seen that level since ’92,”
Hommes says people seem to be traveling more recently as witnessed by the use of nine-point-three million barrels of oil a day last week.
“So we’ve bumped by nearly one million barrels a day just because of summer driving. Travel and our use of gasoline is certainly up,”
He also says the increased demand has helped keep the price up.
The output of gasoline is at a two-year high and that should push prices down, but he says the demand has gone higher. Hommes believes the gas prices won’t continue going up that much more.