Jamaica Gas Prices

Since trading began this week the price of oil has been inching ever closer to that US$100 per barrel mark. In trading yesterday, the price per barrel of Oil crossed the US$98 per barrel mark. This does not spell good news but by now we all know that. We will have to get use to living with the reality that the price will likely not go down significantly from that mark, in the near to short term future.

There are many reasons being put forward for the continued increase in the price of Oil

• The Turkish - Kurdish conflict in Northern Iraq
• Falling USA inventories
• The Impending Winter Season
• Weakening US dollar
• Decreased production in Mexico

The forecasts is for the US dollar to continue weakening against the major currencies such as the Euro and the Canadian dollars and continue recording new lows.

Whatever the reasons, Jamaica and the world has the current reality of high Oil prices to deal with. Its effect is being felt in higher gas prices, higher electricity bills, rising transportation costs and all areas dependent directly or indirectly on this precisous commodity.

Another week, another record as Oil prices take a steady march to US$100 per barrel. Yesterday Oil prices rose to record highs of $96.24. This is just $3.76 alway from the $100 mark.

The factors affecting the continued rise in the price of Oil include, declining United States inventories as we approach fall and the winter months, production problems in Mexico continued tensions in Mexico and the expected ,but not sure, increased production by OPEC countries. In the next seven days we will get an idea whether or not OPEC will or has indeed increase production by the shaky promise of 500,000 barrels of Oil per day. As for the other factors there is really no end in site.

With these high oil prices and Petroleum Corporation of Jamaica announcing increases ranging from  $1.96 to $2.54 it is hard to see any relenting in Oil Prices in the gas prices. Christmas they say has come early but certainly not for the Jamaican drivers only the Oil producers around the world.

Jamaicans woke up the news that Oil Prices yesterday hit a new record of $93.53 per barrel. The world economy could be in trouble if these Oil prices continue in the direction they are going.

Analysts say that the reason for the latest round of increases is combination of factors. These factors include a weak American dollar, oil production problems in Mexico and continuing tensions in Northern Iraq.

A weak American dollar is interesting as despite the American dollar weakening on the world market the Jamaican dollar continues to weaken against the it.

Increases in Oil prices and the resultant increases in Gas prices means that Jamaicans are bound to face rising transportation cost and direct and in-direct increases.

Here at Jamaica Gas Prices we continue to encourage our readers to conserve, plan your trips, avoid the traffic and shop for the best prices you can.