Tuesday, December 20, 2016

Gas Prices Surge

There are a lot of positives to higher oil prices in terms of employment here in the US and abroad but one of the downsides is higher gas prices.  Gas has surged on average from closer to $2.00 to around $2.24 on a national average over the last month.   According to Brian Sozzi and via AAAnews, gas prices are straight up over the past 20 days.  Right now this still makes gasoline a bargain when compared to prices in 2013 and about average for 2014-2015 years.  However, one has to wonder if the price of gas could become a headwind to growth next year.  Right now we're in the winter season when gasoline blends are cheaper than at other times, but you have to consider what happens if gas prices approach $3.00 next year during the peak driving season.

Not trying to be a Grinch and this is just one negative in a sea of positives.  But it is something that every American is aware of and has ramifications for us all so it bears watching.  The good news is that more of this money stays in the US now as drilling here supplies more of our oil needs.