Oil continued its march upwards today, closing at $71.33.
Today’s reason for a rise: U.S. stockpiles fell by 4.4 million barrels, which was more than expected, and imports fell by 676,000 barrels. Inventories of gasoline also fell as refineries cut back on production and demand lifted.
This gives investors even more reason to believe in a turnaround by the end of the year, which is going to drive the price of oil higher.
For the most part, this upward march in oil prices has been a story for investors. The average consumer hasn’t been stung at the pump while oil marches upward. But as can be seen in the chart below the price of gas is climbing up once again. We’ve had 41 days in a row with a lift in average gas prices.
With refineries cutting back, demand returning, and oil prices climbing, the price of gas will climb. That’s really going to sting consumers, which will screw up any kind of plan for recovery.
The administration must be getting nervous. It’s just a matter of time before we start having hearings about oil speculators.
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