Posted in: Gas Prices,
by Patrick DeHaan on Oct 22, 2009 11:30 AM
In a rare move, OPEC this morning announced that they're looking into options to increase production of oil if prices remain steady. The move is likely to reinforce a price ceiling for oil, which has rallied to $81 today, and ensure that the world's largest economy can rally upon affordable energy. OPEC's announcement may actually hurt oil prices as the announcement can be seen as a reminder that oil supply will remain adequate.
Oil prices have rallied from under $70 just weeks ago, most recently closing above $80 per barrel as a result of increased year-on-year demand, a weak U.S. dollar, and large draws of gasoline from stockpiles. Gasoline prices have also rallied as oil has climbed.
The latest GasBuddy data shows the U.S. average at $2.65, up fifteen cents in just one week. Similar hikes are occurring in Canada where gasoline has risen to 98.6c/L from 96c/L a week ago. Many areas of Canada are again over 100c/L and most areas will return to the mark in the next week.