Gas Prices Are Creeping Up Again

Commentary: People are we going to see a drop in oil prices because of speculation the U.S. will release reserves? I've noticed for the past two months that oil prices have been creeping up again; and then today I read at http://www.huffingtonpost.com/2012/08/27/oil-prices-plunging_n_1833206.html as the threat of production from Tropical Storm Isaac appeared to lessen and traders speculating that a release of oil from U.S. reserves may occur.

The article stated the weather forecasts for Isaac are easing some and letting-up the fear that Isaac might damage key oil and gas operations in the Gulf of Mexico. The National Hurricane Center is now predicting Isaac will grow to a Category 1 hurricane in lieu of a Category 2 hurricane. A Category 1 hurricane winds can range from 74 mph to 95 mph.

The article stated that Gene McGillian, oil analyst for Tradition Energy, stated the production centers in the Gulf are able to withstand low-level hurricanes.

It also stated the Gulf of Mexico produces about one-quarter of the nation's oil; and as of Sunday afternoon, about 24 percent of Gulf oil production has been suspended, according to the Bureau of Safety and Environmental Enforcement.

The article indicated the New York Mercantile Exchange midday trading fell as follows: Benchmark oil fell $1.11 to $95.04; and in London, Brent crude fell $1.20 to $112.39 on the ICE Futures exchange.

It also indicated that Obama's administrations potential for the releasing of oil from the Strategic Petroleum Reserve has also depressed the price of oil. The White House has said a release is one option to combatting higher oil prices. Benchmark U.S. oil has risen 22 percent since late June; Brent crude is up 23 percent in the same period; Brent crude is used to price International blends that many U.S. refineries turn into gasoline.

It stated Americans have felt a pinch in their pockets since the average gas price for a gallon in the U.S. rose to $3.75 on Monday; it's the highest since May 9 and up about 42 cents from the low reached on July 2. Stephen Schork, Analyst and oil trader also stated in a daily newsletter that gasoline could rise as high as $3.90 by early October, increasing the odds that the administration will tap the SPR in an effort to bring down oil and gas prices.

The article stated to offset price spikes due to the loss of oil production in Libya last year and after Huricane Katrina battered the Gulf Coast in 2005 that oil was previously released from the SPR.

Conclusions: The above is dismal for those in the lower and middle class population, and I ask, what will the outcome be regarding the gas prices going up? Are we going to face less money in our pockets again so we can feed the gas pumps the money desparately needed to survive? It's getting so people who are in the lower and middle class category keep feeling the crunch on a regular basis and there's always something to taking money out of their pockets instead of ever putting it back into them. These people struggle on a daily basis to be able to pay for gas to get them to their work-places and back, and for other important food and other requirements.

These gas prices are getting harder and harder for people to swallow and there needs to be a set price decided for a set period of time instead of juggling them up and down on a continual basis. It makes life tedious and unsure for a lot of people.

Source:
http://www.huffingtonpost.com/2012/08/27/oil-prices-plunging_n_1833206.html