Once again, current gas prices are on the rise again and motorist are feeling the squeeze at the pumps. With the busy summertime season getting ready to kick off, many vacation destinations worry that because of the current gas prices, their businesses may be impacted greatly. Many suspect that motorist will choose to stay closer to home rather than travel to their usual travel destinations.
Energy economist Steven Brown attempted to explain why the current gas prices are as they are. He said in part that the weak position of the dollar plays a role in what we are seeing at the pumps since crude oil is priced in dollars worldwide. Other countries that use other currency such as the euro, which is very strong right now, are not seeing this major increase in the current gas prices.
Another reason he gives is that in places such as Nigeria and Saudi Arabia there has been production suspensions of thousands of barrels of crude oil daily. There could very well be other similar disruptions planned in the near future. Brown concluded the simple fact is the world oil demand is growing faster than oil supplies are being developed