As a result of improving US economy and postulation of reducing Iranian supply, oil prices recently have dropped down below $109 a barrel after a 14 percent profit in the month of February 2012. In due response of fluctuating prices, benchmark crude was $108.56 per barrel after reducing by $1.21 in New York on 27th of February 2012.
Because of ongoing alteration in the prices of oil Brent crude, which is accustomed to price oil that's imported by US refineries has gone through influential impact. It fell by $1.30 to close at $124.17 per barrel in London.
The government figures denote that the demand for crude oil has reduced before a year in the United States. However, improving US economy will boost consumption of oil in the future.
Analysts believe that a big reason for soaring oil pricefor around nine-months is as a result of a standoff between the West and Iran over its nuclear program.
Western nations speculate that Iran is setting up a nuclear weapon as well interested in getting international inspectors into its facilities. However, Iran refuses to claim and also, threatened to disrupt oil supplies.
On account of such affairs fuming into mass acclamation, it is a strong assumption that the prises on oil will climb up. The prices on gasoline will toll up at a national average of $3.70 in the US. This prise rise has been believed to be highest ever for this time year as well acknowledged 18 cents high over the past two weeks.
With a glimpse in shifting prices on oil, it is unquestionably depicted that consumers have to pay an average price of $4.29 per gallon in California. The price is above $4 per gallon in Alaska and Hawaii, and it's about $3.95 per gallon in Connecticut and New York. In Utah, the average price is $3.21, which has climbed up 11 cents in the past week. Rising oil prise has duly influenced gas prices that are assumed to be $5 a gallon at the isolated regions of the United States.
The Oil Price Information Service said that pump prices will increase by another 5 cents to 10 cents in future to reflect the impact of price hikes last week in wholesale markets.