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Gas prices rise after 123 days of dropping

CARLSBAD – It would appear that the drop in gas prices might have come to a halt, as local gas prices have inched back up, with the highest price in town hitting $1.95.

“The national average for gas increased for the first time in 123 days, ending the longest streak of daily price declines,” AAA said Tuesday. However, AAA also tweeted out Thursday that “U.S. average gas prices have increased three days in a row to $2.04.”

Many experts were predicting that the U.S. would see the national average below $2, but the past few days would indicate that perhaps not, according to news reports.

Multiple factors could be the reason for prices creeping back up again, said Wally Drangmeister, New Mexico Oil and Gas Association vice president and director of communications.

One unpredictable factor is the instability in Greece and its economy. If Greece were to go into recession, then U.S. gas prices will increase again, Drangmeister said.

Oil industry experts have said that predicting how gas will change in the long-term is always difficult, because what happens outside of the U.S. is always unpredictable.

“The small increase you’re seeing could also be due to refineries slowing their production down as they switch over to the summer crude formula,” Drangmeister said.

In general, a rebound for gas prices will happen, it’s just a matter of when and by how much. Refineries have been processing less crude oil and are producing less gasoline.

“The stock markets can be wrong, but the futures price for oil in the next few months still has oil per barrel priced at $50,” Drangmeister said.

Despite the small increase this week, as many as 25 states in the U.S. are still seeing gas prices below $2 per gallon, according to AAA, which also expects the national average to remain below $3 per gallon in 2015, barring any major fluctuations in the global price of crude.

Related: As gasoline prices drop, Americans swing to favor oil exports: Poll

 

This article was written by Sarah Matott from Carlsbad Current-Argus, N.M. and was legally licensed through the NewsCred publisher network.

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