Noticing that gas prices haven’t come down since the fall 2017? The holiday season is over, which means holiday traveling is down. Gas prices should be decreasing; however, there are a few reasons why gas remains high-priced:
November 2017, oil prices hit a 2-year high (2.6% increase) since June 2015. Since December 2017, oil prices have climbed an additional 1% due to a threatened strike in Nigeria. According to BIC Magazine, one of Nigeria’s main oil unions threatened to go on strike over a “mass sacking of workers”. Nigeria is Africa’s top oil exporter.
Another factor as to why oil prices have spiked might have something to do with America’s economy at the moment. There is a high demand for gasoline as Americans are hitting the road. However, the Midwest is still feeling the impact of Harvey as resources and gasoline supplies are still recovering in the Houston area.
Typically, the early months of the new year indicate that gas prices will fall. According to GasBuddy’s 2018 Gas Price Report, gas prices are expected to remain around the $3 mark. Many factors go into determining a balanced gas forecast for 2018 such as OPEC (Organization of the Petroleum Exporting Countries), fuel taxes, the economy and the impact on supply and demand.