KIMBALL – A quick look at any of the marquees displaying gas prices in Kimball is enough to give any one pause. In two short jumps, gas surged $.25 to settle at $1.89 a gallon. Although this is still significantly lower than prices this past summer, the increase coupled with the continued drop in the economy, still forces a negative shake of the head and a heavy sigh from local consumers.

According to AAA, the national average for a gallon of gasoline on Feb. 10, was $1.928. This is up $.004 from the day before yet down $1.015 from a year ago.

The national average for diesel is $2.352. Diesel is down slightly more than one dollar from last year.

The cause of the steady increase in gasoline prices is because gasoline refiners have dramatically cut back production. The reason for the cut back is because of a major decrease in demand and a reported surplus in supply.

Further adding to the rise in gasoline is the signal from OPEC that oil production might be cut yet again. As of Feb. 4,  oil was $39.56 a barrel for March delivery.

OPEC (The Organization of Petroleum Exporting Countries) pledged to slash production by 2.2 million barrels a day in December. In January the organization produced 26.23 million barrels a day, down 1.01 million barrels in December. OPEC produces about 40 percent of the worlds crude.

Traders on the New York Mercantile Exchange look to Washington to see if Democrats and Republicans can come together to pass  another stimulus plan. Whether or not the plan passes could determine the effects of oil prices in the future.

Editors note: Gas prices dropped $.12 since the writing of this article.