Rising gas prices have many concerned over their budgets, but it’s actually a good sign.
As the U.S. and other countries recover from a global recession, the demand for crude oil has gone up, which has made for higher gas prices at the pump, according to the LA Times.
"A lot of what drives prices is projection of future demand," Carl A. Larry, president of Oil Outlooks and Opinions, a research and consulting firm, told the LA Times.
Though harsh, this rise in gas prices will be different from last year’s surge. The economy is stronger and better capable of handling a spike in prices.
"It's a head wind for the consumer, but it doesn't derail the recovery,” Kathy Bostjancic, director for macroeconomic analysis at the Conference Board, told the LA Times. “It can be taken in stride, especially if the underlying fundamentals of the economy are improving, which they are.”
Some U.S. industries that have been struggling may also be able to trudge through the gas problem.
The auto industry is still in recovery, but the rise in fuel prices isn’t likely to slow it down, according to Street Insider. LMC Automotive, a research firm, told Street Insider that U.S. auto sales are expected to reach 14.1 million units for 2012.
Gas prices won’t slow down car sales, but it will lead consumers to make different choices in vehicles, like compact cars. LMC told the Street Insider that small car sales in 2012 could reach 20 percent, which would be the largest share on record.
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