Governmental Influence on Gas Prices and Oil Stocks
If you have not paid a visit to a nearby gas station, you will be surprised to learn that gasoline prices jumped up to 20 cents overnight. According to an article published on CNBC, gas prices are expected to continue to climb through to next month’s presidential election. This recent hike in oil prices is at the highest levels since summer of 2008. According to the AAA Daily Fuel Gauge report, gas prices jumped to about $4.50 a gallon in Southern California with the average gas price across the state at $4.49 a gallon —ouch. Unfortunately, there is not much we can do—either we pay the hefty price tag to pump up or we find alternative methods to get from point A to point B. At times like these, should we put the blame on the government for high gas prices? For more information please click here. According to CNN’s fact check for oil and natural gas under Obama, gas prices are actually based on various factors and are set by financial exchanges around the world. Thus, the government has no influence on gas prices. The price of crude oil (used to make gas) usually determines how much we pay for gas at the station. Low demand at the end of the year is usually the main cause for high gas prices. However, the production of oil and gas has actually increased in the nation over the past few years. With the national presidential election right around the corner, some say that neither Barack Obama nor Mitt Romney will be able. Has the increase in natural gas prices been reflected upon oil and gas stocks? This remains a big question as gas prices are expected to stay pricy for the rest of 2012. This means expensive gas for the next year and also high stock prices for natural gas producers. Determining which oil penny stocks to invest in the low-price range can be