Drivers face high gas prices despite US oil boom - FOX 8 WVUE New Orleans News, Weather, Sports

Drivers face high gas prices despite US oil boom

Updated:

NEW YORK (AP) - The United States is increasing its oil production faster than ever. And American drivers are guzzling less gas.

But the national average price of a gallon of gas has surged to $3.69 a gallon. And it's expected to go higher -- perhaps approaching $4 by May.

Last year, U.S. oil output rose 14 percent to 6.5 million barrels a day -- a record increase. Meanwhile, U.S. gasoline demand is at its lowest level since 2001, as people switch to more fuel-efficient cars.

The experts say the laws of supply and demand haven't been repealed. They're working -- but not the way U.S. drivers want them to.

U.S. drivers compete with drivers around the world for every gallon of gas. And as the economies of Asia and Latin America expand, their energy consumption is rising. That puts pressure on fuel supplies and prices everywhere.

While the U.S. still consumes more oil than any other country, imports are falling. That leaves China, the world's largest oil importer, as the single biggest influence on global demand. And its consumption has risen 28 percent in five years.

Other factors making gas more expensive are high crude oil prices and temporary shutdowns of refineries in the winter.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Powered by WorldNow

Fox 8 WVUE-TV
Louisiana Media Company, LLC.
1025 S. Jefferson Davis Parkway
New Orleans, LA 70125

General Number: (504) 486-6161
News Tips: (504) 483-1503
News Room Fax: (504) 483-1543

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WVUE. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.