Oil is plentiful as new discoveries continue to be made, natural gas exploration and production is up, the dollar has strengthened, it’s an election year, and so gasoline prices are going which direction? Down? Well, no, according to the experts, gasoline prices are rising and could top $6 per gallon by summer.
Each of the above conditions usually results in lower prices at the gas pump. If supply goes up on constant demand, then price should at least remain steady or go down. As new discoveries are made then supply goes up and at constant demand, price should go down. Even as production lags discovery, markets build in the worldwide supply figures. Natural gas production is soaring allowing for cheaper substitution for oil.