It was nice while it lasted, but the price of gasoline in San Antonio has popped back over $2 a gallon for the first time in three weeks, News Radio 1200 WOAI reports.
AAA Texas says the average price in the city today is an even $2.00 a gallon, still the cheapest price in the state, and one of the cheapest in the nation. Statewide, the average is $2.18 while nationwide, motorists are paying an average of $2.29.
Two weeks ago, San Antonio motorists were paying just $1.95, the lowest price for mid July this century.
AAA cites several factors for the slow but steady increase.
First, this is the height of summer travel season, and demand is finally catching up to supply, as more families hit the road before the start of school.
That increased demand has started to cut into an oversupply of crude oil and refined gasoline, which was holding down any effort by OPEC to get the prices back up.
The oil producing nations are finally making progress on a program of production cuts designed to cut into the oil glut and stabilize prices, although some OPEC members continue 'cheating.' The problem is that countries which have come to rely on oil exports for as much as 85% of their national revenue can't afford to cut production at a time of lower prices, they have to sell more to keep the revenue stream flowing.
In addition, experts say Texas shale producers have begun to cut back on production, largely because the oil prices in the low $40s which we have seen for the past couple of months has diminished the new investment needed to keep the shale pumps operating.
AAA says we could see pump prices continue to drift upward for the coming month or so, but there is nothing on the horizon, barring a major hurricane which cuts refinery operations, that would indicate that a major increase is coming.
After the end of August, the demand will drop as the summer travel season ends, and EPA mandated cleaner blend summer fuels, which are designed to hold down air pollution, will also be phased out, and replaced by cheaper winter fuels.