Fuel costs are impacted by so many elements. A report on Friday speaks of a downward pattern, due to ample supply. However, another source reports that Hurricane Sandy, the "Frankenstorm," may trigger a short-term price jump for gas. Resource for this article: why possibly not perform you a like and also obtain a overall look located at https://personalmoneynetwork.com/?
There has been a massive drop in the cost of gas over the last week. In fact, it has dropped seven percent. On October 26, the cost of oil dropped 80 cents a barrel to $85.25 on the New York Mercantile Exchange, according to Daily Finance. That is the lowest it has been since it was at $84.02 per barrel on July 10. A lot of people are happy about that news.
Professionals are attributing the drop, at least in part, to a plentiful supply of oil. Ric Spooner, chief market analyst at CMC Markets in Sydney, said:
"I think that's all about a scenario of more than adequate supply for the current demand level."
The United States Department of Energy explained that oil supplies increased 1.6 percent during the last week or a total of 11.1 percent more than it was last year at this time. The inventory in the United States is at 375 million barrels now.
After Hurricane Sandy, reports are expecting a rise at the pumps.
CBS news believes 6.5 percent of gasoline consumed by Americans comes from refineries in the East Coast, which means it might be an issue if production is halted temporarily. The storm could trigger that to happen, according to Seeking Alpha research firm.
The cost of gas at the pump -- which is currently an average of $3.60 a gallon, and has been easing its way down -- could increase sharply. AAA says that pump prices have dropped every single day since Oct 8.
Hurricane Isaac did not do too much
In August, Hurricane Isaac caused the temporary closer of some Gulf Coast refineries. Those closures prompted the largest one-day spike in gas costs in a year and a half.
Sandy could wreak billion-dollar havoc
Hurricane Sandy has already killed 21 individuals in Jamaica. Because it has become a merger of many storm fronts into one monstrous storm, it has come to be known as the "Frankenstorm." It is due to hit the East Coast in the coming week. According to CBS, it could trigger as much as $1 billion in damages and leave millions without power.