MORGANTOWN, W.Va. — The rising price of gasoline has everybody grumbling, but the message of one oil analyst is we better get used to it.
Gasoline prices have crept up in the past week to an average price of 3.67/gallon nationally. West Virginia’s average price is 3.64 per gallon.
“In the last couple of years you’ve had a surplus of oil in the Midwest coming from North Dakota and Texas,” said Mike Breard, oil and gas analyst with Hodges Capital, on MetroNews Talkline Monday. “Now, with increased pipeline and railroad capacity, that surplus is gone, and the U.S. is now equivalent to the international oil price.”
Breard said the demand for gasoline remains high and therefore, the price for it will stay there. He made the case in recent years gasoline in the United States has actually been at a bargain and now we are starting to see an evening of the playing field in the world market. He said the forecast going forward isn’t one drivers will want to hear.
“Oil prices should gradually go up over the next 15 to 20 years,” he said.
The only thing which would change that trend, according to Breard, is a worldwide depression. He said that scenario carries a separate set of woes.
“I think most people would rather pay four dollars for a gallon of gasoline and have a job to drive to rather than pay three dollars and sit home idle,” Breard said.