Gas prices have finally stopped falling
NEW YORK — For now the consistent four month decline on the price of gasoline has come to an end.
According to CNN, the price of gas per gallon on average has gone up for the first time since November 25, 2014. Back then the average price for a gallon of gas was $3.35. On Monday the price was $2.03 per gallon, and on Tuesday it had already inched up one cent to $2.04 a gallon, which is the first increase in 123 straight. The price remained the same on Wednesday.
Saudi King Abdullah bin Abdulaziz al Saud’s death last week made markets unsure of how Saudi Arabia’s oil production will maintain itself, causing increases on commodity markets’ wholesale gas and crude oil prices.
The Saudi’s decision to continue production, despite the falling prices, rests on the transfer of power to the former leader’s half sibling, which is expected to go smoothly. In the past the country has been known to decrease output as a way to maintain prices.
Last year the US surpassed Saudi Arabia as the world’s largest oil producer, which has played a part in the decline, and also the increase in popularity of more fuel efficient vehicles.