Why are we seeing higher gas prices? - KLTV.com - Tyler, Longview, Jacksonville |ETX News

Why are we seeing higher gas prices?

Lakecia Shockley - email

LONGVIEW, TX (KLTV) - Gases prices are climbing and motorist are feeling the effects in their pocketbooks. Prices at the gasoline pump have risen over 50 days in a row. AAA says the price of crude oil has doubled in value since March but the government says demand is down. So why are we seeing higher gas prices, if it's not the  supply and demand factor?         

First we had relief, but now it looks like the "pain at the pump" has returned.

"I just think the person on top wants all the money," said Brittany Fulks."That's what I think!"

"I sit here and have to drive a four cylinder and I have a V-8 truck," said Justin Bryant. "I don't want to drive a four cylinder, I want to drive a V-8, but I can't afford the gas prices."

"There is a surplus of oil on the market which makes it difficult to explain why the prices are going up but like I say it's not supply and demand," said Charles Bachtell, with Bachtell Oil & Gas Company.

Charles Bachtell and his sons own  Bachtell Oil and Gas Company. He says fear, uncertainly, and weakness of the dollar are why crude oil prices are up despite demand being low.

"Traders believe that it is a good inflation hedge because right now the dollars is declining against the euro so a lot of dollars have been piling into buying crude oil futures," explained Bachtell. "The unrest in Iran, because they do produce quite a bit of oil, and the uncertainly that they can create in the Middle East, and even today you see that Nigeria had one of their major pipe lines blown up. So, all of those thing combined contribute to the high oil prices."

Despite demand being down and crude oil prices up, some gas consumers are putting off complaining, at least for now.

"At least they're not as bad as they were last year at this time," said Tim Bunch.          

Bachtell said East Texas is a bigger beneficiary of higher oil and gas prices than probably any other area in the country which makes our economy a lot more steady.

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