Why Aren’t Gas Prices Even Higher?
We’ve seen a spike of almost one dollar a gallon in prices so far this year. The oil market has been volatile for a number of reasons. A potential war between the United States and Iran. The implosion of Venezuela. OPEC is trying to flex what little muscle it may have left and, yet.
So why aren’t we seeing five dollars a gallon?
The remarkable thing is prices could be much higher on all this news. So why aren’t we seeing five dollars a gallon?
Demand continues to underwhelm expectations.
Economies in emerging nations aren’t growing nearly as fast as projections. Therefore there isn’t as much oil demand. China’s growth has slowed and the trade war isn’t going to make it pick up speed anytime soon.
And we also can’t discount what has been taking place in North America. While shale production needs a steady floor price, the industry gets more and more efficient. While at the same time new fields are turning up in U.S. waters.