Oil prices surge as US burns through crude supply at record rate

Oil Prices have risen this past week because of an over supply of oil in the United States, this over supply is at the highest rate this year. Many people are saying this over supply has come from tropical storms and hurricane Herman. The industry used 14.5 million barrels in storage, mostly from the East coast, and the Gulf shores.

This also effected US imports of oil, as there was a sharp decline of 1.8 million barrels a day. With imports down, and oil drilling in the United States shutting down in the Gulf area we saw gasoline stocks drop by 4.2 billion barrels.

Andrew Lipow is the president of Lipow Oil Associates, and he is certain that in the next few weeks the oil inventory will recover to an extent, but the imports need to catch up. He also stated these storms are effecting the shipping of oil, but he does not believe that will affect OPEC from increasing their oil production.

Vladmir Putin and Saudi Deputy Crown Prince Mohammed bin Salman met durin the G-20 meeting, and issued a statement of cooperation, which contributed to the increasing oil prices.

The oil industry has a large effect on our economy as we import a lot of oil, but we also produce a lot of oil. No one thinks about storms affecting the distribution of oil, or affecting the production of oil in the United States, but these storms have had an affect on our oil industry, with the rising prices, and the decline in oil imports. From reading this article I do not believe this will have a large impact on our oil industry, but it does affect the production and distribution of oil for a short period of time.

http://www.msn.com/en-us/money/markets/oil-prices-surge-as-us-burns-through-crude-supply-at-record-rate/ar-AAiF08v