Oil Prices Rise Above $62
November 29th, 2006 | by Brian Carr |Oil prices continued to steadily increase, rising by $1.47 today to close at $62.29, the highest price since October 1. Since November 17, oil prices have increased roughly $6 (from $56 to $62) - an increase of nearly 11%.
And, according to many analysts, we can expect the increase to continue into the winter as the winter temperatures drop in the Northern Hemisphere, causing an increase in demand for heating oil.
The recent run up in price can be attributed to several factors, which include:
- Alaska’s decision to strip several oil companies (Exxon Mobil included) of their leases in the state’s Pointe Thompson oil and gas field.
- A rebel attack on a Sudanese oil field.
- The fear that the Organization of Petroleum Exporting Countries (OPEC) would follow through and cut daily oil production by 1.2 million barrels.
- Data showing a decrease in the United States’ oil and gasoline reserves.
With the recent spike in the price of oil, the price of gasoline has shot up right along with it, albeit at a slower pace (which actually comes as a surprise). Since November 17, the average price for a gallon of regular unleaded gasoline has increased from $2.18 to $2.26, a rise of slightly under 4%.
All of these things coupled with the fact that the price of oil and gasoline typically begins to increase around the first of the year, it looks like the days of sub $2 (or close to it) gas are behind us.
Hope you enjoyed it while it lasted.
