Current Events

“Fill’er Up” Costing More

A gallon of gas is costing you more than it did last year; even if you don’t drive, this impacts your life.

“…don’t hold your breath – it may get worse before it gets better.

Current Events

Why It’s Happening

  • After the summer, we normally see prices fall as oil refineries switch over to a cheaper fuel blend for the winter season – this price drop isn’t happening.
  • Concerns about oil supplies amid global tensions have oil prices 50% higher vs. last year.
  • If and when gas prices hit $3.00 a gallon/average (currently $2.91) – it’ll be first time in four years.
Current Events

Bigger Picture

  • Oil prices hit $75/barrel last week for first time since 2014.
  • U.S. sanctions vs. Iran will take oil away from global supply.
  • Organization for Petroleum Exporting Countries (OPEC) has so far rebuffed U.S.’s request to boost oil production.
  • Higher oil supply = lower prices. Concern now: lower supply will lead to higher prices for all.
Current Events

Why It Matters
(even if you don’t drive)

  • A spike in oil prices came before the last 5 U.S. recessions.
  • Consumers spend 80 cents of every dollar saved on gasoline on other things like restaurants, electronics and appliances. As gas prices rise, it limits our ability to spend our money elsewhere, thereby, impacting the overall economy.
Current Events

Even though America is now the world's largest oil producer, we are still part of a global market and that's why international affairs can impact the prices we see stateside.

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