Energy prices are quickly rising, but it hasn’t derailed the economic recovery yet. Therefore, it is not yet time to really panic.
Crude oils prices rose more than 4 percent over the last month and the price is now coming close to $100 per barrel. During the last month, gasoline has also risen up to 8 percent and motorist are now paying $0.14 more per gallon than in the mid of last month.
It is a good thing though that natural gas prices are not really going high, rather they were fluctuating and currently have fallen to 4 percent this month due to the easing cold weather. Natural gas is widely used for home heating and since the weather is expected to heat up little by little, the price of natural gas is expected to go lower.
Energy forecasters report that, in part, prices are on the rise due to the recurring nature of energy prices. Often, they rise ahead of the upcoming strong summer demand. Another reason for the rise in oil and gas prices is the sense that the economy is recovering. This is a strategic method used by businesses; they will boost up the price of gas as soon as they see that people are gaining back freedom to spend on other things.
The price increase on oil and gasoline though should not distress the consuming public, because they do not have any noticeable effects yet on the world’s economic growth. After all, the prices of oil at the start of last year were actually significantly higher than they are now.
Experts are saying that the world has withstood the $100 per barrel cost of gasoline before and it is certainly something that can be done again. As long of course, as the price will not hit $150 per barrel. When that happens, withstanding is not going to be very possible anymore.
Fortunately, for the world in general, and for the motorists in particular, no one is predicting the prices of oil and gas for this year.
Last year’s top oil price was recorded on April at $3.94 per gallon; so far it is expected to rise for only up to $3.90 for the whole year. This means that this is expected to be a better year than the last after all.
There are also expectations that oil prices in the US may actually drop to $50 a barrel in the coming months. This is indeed good news and reason enough to let people relax and enjoy life the way they should.
