How High Gas Prices Will Go Nobody Knows

Demand is up and production is down.Gas prices are on the way up again.

Prices are 27-cents higher than they were a month ago and the average price per gallon is $2.56 in Nebraska and in Iowa.

Rose White with AAA Nebraska says, "Demand for gasoline increased 269,000 barrels a day from the previous week.Unfortunately the supply levels have dropped for the past few weeks.

White says U.S. production levels remain the highest in history but much of that product is being exported.OPEC continues to adhere to their production cuts and that is keeping crude oil prices at the $60 a barrel level. White says that amount is still reasonable but it is still driving prices higher at the pump.

There doesn't appear to be relief in sight White says, "With the increase in demand we see during the onset of the summer travel season, we can expect to see that demand continue for the months ahead and that often drives prices higher.Another issue is fuel stocks have dropped by 4.6 million barrels in the last week.If this trend continues we can expect to see gas prices to rise."

There is one more factor.Refiners are switching to the summer blend of fuel which is more expensive to produce.That will contribute to those continuing rising prices.


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