It's going up again

If you thought the $2.20 a gallon you paid at your local BP was a dream come true, don't get too excited. In an AP business article titled "Oil rises as gasoline supplies fall," reporter Madlen Read discusses how oil prices per barrel climbed to over $60 today. The cause has something to do with OPEC cutting its production costs and "assessed declines in U.S. gasoline and diesel fuel inventories."

According to the San Jose Mercury News, "What's up with this recent price blip? Violence in Nigeria, threats from members of the Organization of Petroleum Exporting Countries to pump less oil and the oncoming winter with its demand for more heating oil. Some experts say prices fell so far so fast that they have to rebound upward. Others say there's a glut of oil available and that prices will not rise much." The article went on to describe how a colder-than-average winter that forecasters are predicting may also be playing a role in the increase of oil costs.

Yesterday's gubernatorial elections that pronounced Crist the winner may also have something to do with why prices are suddenly shooting up. It is no suprise to me that a day after Election Day, you see a rise in petroleum costs.

While it may not drop to 20 degrees in South Florida during the winter, surges in gas prices may apparently be linked to those who have to heat their homes throughout the winter season. I expect prices to rise a little and then skyrocket once we reach summertime.