Photo: herzogbr (Flickr)
Gas prices are on the rise, and so is the cost of oil. Light sweet crude oil, the standard for making gasoline, has been trading above $90 a barrel for more than a week. According to market experts, the price is expected to rise to over $100 a barrel in the new year, bringing fuel prices higher than they’ve been in years.
While American’s have cut back on oil consumption during the recession, the rest of the world is starting to use more. According to the Platts news service, China used 9.3 million barrels of oil per day in November, which is 13% more than they consumed per day a year ago.
Senior Economist Tancred Lidderdale of the Department of Energy’s Information Administration says China’s increased consumption along with increased consumption in the developing world is driving crude prices up.
“We see larger growth of oil consumption in developing countries,” he says, “particularly in China, India, and the Middle East. For example, the increase in oil consumption in China is 3-4 times that of the United States.
While the US economy is recovering slowly, China’s recovery rate is much higher
“U.S. economic growth right now,” he says, “is 2-3%, while China’s is over 10%”
According to Gasbuddy.com, prices in Bloomington are currently around 3 dollars and 20 cents, which is comparable to prices the state.