Some experts predict the price of gas will soon be jumping by a dime or more a gallon, and while you’re grumbling at the gas pump you might blame the unrest in Egypt. Seems like every time there’s trouble in the middle east, gas prices spike. Not only that, but we’re heading into peak driving season with summer prices already making digits on pumps whiz by faster than ever. And then there’s the additional gas taxes Californians are paying.
Except in this case you’d only be partially right. As reported on CNBC.com by Patti Domm, another reason is because the US is becoming an even bigger success selling our domestic oil on the world market. World demand is up, we’re selling more, and that means our inventories are low. In fact, according to the CNBC report, the US has just experienced the biggest two-week drop in inventory in 30 years.
So as your tank fills and your wallet empties, smile. It only hurts because the US is more successful than ever in the world oil market.