Spring is here and it means longer days, and as recent trips to the pump show, higher prices for gasoline. Does this mean that the end of low oil prices is here? No, it simply means that the refineries are undergoing regular maintenance and that the summer blend of gasoline is here or at least on the way to many gas stations across the country. It is important to remember that the prices are not going up because of a resurgence of the price of oil. Rather, it’s a change in what the refineries are doing.
What Will Happen in During Summertime?
One of the questions that many people have is just what will be happening to the gas prices over the course of the next few months. Those who are in the oil industry are hoping that the price goes up, while many in the United States are hoping that the prices stay low, as it means lower prices for road trips, and potentially lower airfares.
Chances are that the gas prices will go up a bit during the summer, as usually happens. In some parts of the country, such as California, they will stay higher than $3 a gallon unless the prices keep dropping. Other parts of the country will see an increase as well, although it might not reach the $3 price this summer. Keep in mind that there is an increase that happens each year, so this is typical. Still, the prices are lower than they have been in years, and this is prompting more people to take more trips in the car.
Of course, it depends on a number of factors. If the number of people who are traveling and buying more gas continues to increase, the bump in demand could potentially push the prices higher as long as the supply doesn’t keep growing. Right now, experts are on both sides when it comes to predicting just what will happen with the gas prices. Some feel that the prices have bottomed out and that they will start to rebound over the coming months. Others believe that the prices could still drop. The only thing that they seem to agree on is that they don’t agree.
Whether you are in the oil industry, or you are just a consumer, it is important to keep an eye on the elements that could cause those prices to go up or down.
About Oil Works Inc.
Oil Works, Inc. is a complete drilling rig equipment manufacturer and service provider based in the Permian Basin for over 20 years. OWI’s product and service offerings include Derricks, Substructures, Drawworks, Mud Systems, Walking Systems, Power Generation, Control Systems, Iron Roughneck Repair and Upgrades and complete Rig Solutions built to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.