Gas Prices and Supply Uncertainty Going Up

Jan 14, 2003
George Anderson

By George Anderson

According to the Lundberg Study (,
drivers in the US paid an average of $1.47 a gallon for gasoline over the past
three weeks. The latest numbers represent a 5.6 cents per gallon increase from
Lundberg’s previous study.

Trilby Lundberg, publisher of the Lundberg Survey told CNN that despite the recent hike, the amount consumers are paying for gasoline is only a penny higher than it was two months ago. “We’re not seeing a huge price surge, but the reversal of declines in the prior month.”

The Lundberg Study surveys prices at more than 7,000 gas stations in the 50 states and the District of Columbia.

CNN reports that the oil industry strike in Venezuela is the main cause behind the price. The news organization says, “Venezuela accounts for about 12 percent of US oil imports.”

The Organization of Petroleum Exporting Countries (OPEC) announced on Sunday that member nations would increase oil production by 1.5 million barrels a day in response to the shortage caused by the Venezuelan strike. Venezuela produces about 2 billion barrels of oil a day.

Moderator’s Comment: What impact will higher gas prices
have on consumer spending and business operations? Should it occur, what affect
will military action in Iraq have on worldwide oil supplies and prices?
Anderson – Moderator

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