Why was gas expensive in 2014?

Throughout the first half of 2014, import petroleum prices rose 10.7 percent following a near 2-year low at the end of 2013. A confluence of factors exerted downward pressure on petroleum prices, leading to the most dramatic drop in petroleum prices since the sharp drop in prices at the end of 2008.

What happened in 2014 to make the oil and gas prices drop?

The initial drop in oil prices from mid-2014 to early 2015 was primarily driven by supply factors, including booming U.S. oil production, receding geopolitical concerns, and shifting OPEC policies. This partly explains why the oil price plunge failed to provide a subsequent boost to global activity.

What caused the 2014 oil crash?

Inventories were huge. The economy was weak. And production was growing. All of these factors drove the price of crude oil to less than $40 per barrel.

What is causing rising gas prices?

As you might expect, supply and demand is one of the key factors that causes gas prices to rise. During the summer, when drivers typically plan vacations, the price of gas goes up.

What is the reason for gas price increase?

The three major causes of high gas prices are supply and demand, commodities traders, and the value of the dollar . These are also the determinants of oil prices. Supply and Demand. Like most of the things you buy, supply and demand affect both gas and oil prices. When demand is greater than supply, prices rise.

Why is the price of gas rising?

Why Gas Prices are Rising. There are a number of reasons why gas prices are rising. One explanation is the change in seasons. According to AAA, spring (and summer too) brings higher gasoline demand. That’s because more travelers are hitting the road at these times of the year–whether it’s going on vacation or just taking a road trip.

What determines gas prices?

While there is a common belief that the supply and demand of crude solely determines the price of gasoline, several other important factors come into play as well. Taxes, depending on the country, can add substantially to the retail price of gasoline. Over time, inflation also results in higher gas prices.