Oil prices are steadily increasing - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Oil prices are steadily increasing

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Amarillo, TX -- Oil prices are steadily increasing.  

The price of oil rose today, placing each barrel of crude at $107, it's the first hike in 9 months.  

On average that puts Amarillo's gas prices around $3.49 per gallon.

A local oil and gas broker says prices go up because of demand.

Summertime also plays role in the price hike-- because more travelers means higher demand. 

A local oil and gas broker says prices are not expected to decrease.  

"It's a lot more expensive to drill for oil today so we need higher prices and again if you look at the history going back for the last four years anyway, you know oil prices have been pretty stable, now they tend to swing you know to the 105 range back down to the 93 range and one of these days it's going to break out above that and i'm afraid we may be close to that happening just simply because of more demand." says Tom McCarty, Oil and gas broker

Two of the largest oil fields in the world are here in the United States, one is in Bakken, North dakota and the other is the Eagle Ford Shale in south Texas.  
   
Iraq has been producing nearly 3.5 million barrels of oil a day this year.  

This is equivalent to 11% of the total production of exporting countries.  

McCarty also says he does not believe the conflict going on in Iraq will make much of an impact in future oil prices. 

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  • Sarah Macias

    Sarah Macias

    Sarah Macias joined the NewsChannel 10 team in April 2014.
    Sarah Macias joined the NewsChannel 10 team in April 2014.