Supply And Demand For Oil Correlates To Increasing Gas Prices

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Oil is one of society’s most essential commodities. It has proven useful in many situations. Therefore, those countries which have an abundant oil supply export it to other nations. However, the increasing consumption of oil directly affects its prices. Because of this, income-producing drivers would have to shell out more from their own money to pay for gas instead of saving some of their salary for other necessities.

The US Energy Information Administration shared that the growing population affects supply and demand for oil, leading to the surge in prices. The United States once had the highest oil consumption with 18 million barrels consumed per day. They added that developed countries such as China, Japan, and India also have a massive oil use.

Last May, the average price for one gallon of gas reached $2.82. Experts predict that prices for gas would increase even more in the summer. Analysts have corroborated this theory.

Cole Gustafson, a Biofuels Economists from the North Dakota State University, said that more people travel during vacations. It is called an increased demand that could cause higher prices if oil companies produce a constant amount of gas.

The demand for crude oil also determines oil prices. Compared to last year’s prices, this year’s were higher due to tighter global oil supply and demand. The US’s current need for oil now peaks at 750 thousand barrels per day.

Because of the situation, transportation company, Lyft offered drivers an increase in Fuel Rewards. It allows them to save 50 cents per gallon at chosen Shell stations in the US. Lyft CEO Jon McNeill recalled that fuel price is one of the major issues they need to address so that it would benefit their workers by saving expenses for gas.

To secure the rewards, the drivers should create a Fuel Rewards account and link it to their Lyft profile. Those who register in July and August shall have a one-time bonus of 25 cents per gallon.

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