Surge in Oil Price in U.S.: Threat to a Slow Economy

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Analysts didn’t expect such a hike in gasoline price. The hike in gasoline price is certainly not good news for the struggling economy. This is due to the fact that, people are made to compensate for their other spending and curb down other activities like watching movie and dinner at outside.

For the re-election campaign, President Barack Obama can be in pressure because of this price hike.

Phil van Schepen notices a not before a driver which was clearly blaming Barack Obama for such price surge of gasoline.

Van schepen stated that it’s a reminder for his overall energy policy, which isn’t appreciable. A person who uses 100-gallon gasoline in a week, s/he has to pay $40 for a week, which is more than they do at early July. Still, the president Barack Obama is not responsible for the price surge.

Analysts agreed and said, “Price for the wholesale gasoline and crude oil are depends on the financial exchange all over the world and this financial expectation rely on the supply and demand expectation.”

The price of crude oil is rising daily. This price rose from $78 to $94 in the late June. In North Sea and South Sudan, production outages have cut the flow of Iranian oil. The violence in Syria has encouraged the price hike of crude oil.

Other seasonal factors are also boosting up the prices. Cost of Gas generally rises at the late spring and summer, as refiners have to make the blend of gasoline to follow the rules of clean air, which is more expensive.

In the previous weeks, in Wisconsin and Illinois creates problem for serving pipeline and refineries shut down suddenly for unexpected reasons.

“If you will have to pay more than you paid before, it does have the prospect to blame the president,” chief oil analyst Kloza said.

“The price smack possibly won’t have a huge effect on the growth of economy, but not yet. The additional 34 cents per gallon means to $33 per month for a standard family,” economists said.

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