Oil Market Volatile, Driving Prices Up
Written by Andrew-Rossi on July 3, 2018
Gas prices are on the rise going into the 4th of July holiday, and one expert says the oil markets will continue to be volatile.
Patrick DeHaan, head of petroleum analysis for GasBuddy, says he can’t remember the last time oil markets were so active. Oil has surged over 10% just in time for summer’s busiest travel holiday, costing motorists over $1 billion more than last year. He added that all the ingredients exist for the national average to inch closer to $3 per gallon, just in time for the second half of the summer – however, prices in the Bighorn Basin have already exceeded that mark.
Including the change locally during the past week, prices yesterday were 70 cents per gallon higher than a year ago and are 8.5 cents per gallon higher than a month ago.
DeHaan predicts that the second half of the summer will be pricier than the first, thanks to OPEC’s production increase falling short of expectations and falling U.S. oil inventories, as well as the fact that hurricane season is still upon us, adding more guess work to where gas prices might spend the second half of the summer.