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Why have the gas prices gone back up?

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Bitek said:
And that's not really what drive prices down. They had been creeping down all last year, but what triggered the slump was SA vowing not to cut production, even if it cut into national budgets.

Basically they launched a price war against the shale producers in the us. Their production costs are much lower, and it's a nationalized industry, so they can afford to bury the us producers.
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Yeah and while SA can support low prices, most of OPEC can't do the same though. It isn't just the shale producers that need the higher prices.
 
SA doesn't care what the price of crude is as long as its profitable for them and it is, so they little to no incentive to cut back, in fact cutting back means loss of market share and when they tried that in the 70's it took decades to get that market back so they have
every intention of keeping their customers supplied no matter what the price.

Secondly SA also in the long term believes in technologies displacing the demand of crude as was said by their Minister in 2000 'the stone age didn't end due to lack of stones', something better came along so if they have oil in the ground that they can get zero for, its worthless, so even at $50, totally worth their time to keep pumping at the same rate as always.
 
I don't think gas prices will anywhere close to where it was last spring/summer.

http://247wallst.com/energy-economy...ttered-after-another-huge-inventory-increase/

The U.S. Energy Information Administration (EIA) released its weekly petroleum status report Wednesday morning. U.S. commercial crude inventories increased by 4.5 million barrels last week, maintaining a total U.S. commercial crude inventory of 448.9 million barrels, the ninth consecutive week of a higher total than at any time in at least 80 years.

In a Tuesday update to its Short-Term Energy Outlook, the EIA lowered its forecast 2015 average price per barrel of West Texas Intermediate (WTI) crude oil from $55.02 to $52.15 and raised its forecast for the yearly average price for a barrel of Brent crude from $57.56 a barrel to $59.50. The continuing builds in crude oil storage are identified as the reason for the wider differential between the two benchmark crudes.

Total gasoline inventories decreased by 200,000 barrels last week, but they remain well above the upper limit of the five-year average range. Total motor gasoline supplied (the EIA’s measure of consumption) averaged over 8.7 million barrels a day for the past four weeks, up by 2.8% compared with the same period a year ago.
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