November 30th, 2015 08:55 AM
Have you noticed the cheap gas prices lately? I was curious today and found some interesting stats to help outline why the price is so low.
The current average price in Denver right now is just $1.85 per gallon but I have seen it in the low $1.70’s in many places. This is due to the flooding of Saudi oil on the market.
Over the past few years, the Saudi’s are selling oil at a loss to try and force US oil producers (Fracking Industry Mostly) out of business.
Check out this information I found at Baker-Hughes. Well over 50% of the oil rigs across the US have already come down in the past year. Same situation in Canada.
OPEC meets this week and Iran is putting pressure on Saudi Arabia to increase its oil prices. This makes sense because Iran has all kinds of oil that has been flooding the market ever since the recent nuclear agreements. But we could very well see the Saudi’s continue forward with their production and plan the bring down US Oil producers.
Low gas prices really can be a huge help to consumers. On the other hand, others are losing jobs (especially here in Colorado), energy stocks still haven’t recovered from their declines, and Obama is using global warming as an excuse for terrorism.
I think there is a high probability that gas prices could continue to get lower. What do you think?