That doesn't bode well for the summer recreation season or Iowa tourism. It also shouldn't be overlooked that farmers will soon begin working their fields preparing for the planting season. One thing farmers don't need is increased production costs caused by inflated gasoline prices. Meetings recently of key Persian Gulf oil ministers resulted in reports that they backed production increases which would ease high oil prices. They said they hoped to maintain market stability for the interests of producers and consumers and had no wish to harm the world economy.
Inventories are unusually low.
Last week gasoline stocks stood at 197 million barrels, compared to 229 million barrels a year ago, the Energy Department says. Crude oil stocks were 286 million barrels, well below historic levels for this time of year and some 50 million less barrels than a year ago. It's clear that OPEC needs to produce more oil to bring prices back into line. Whether they will do that remains to be seen. Meanwhile, motorists and farmers will continue to pay higher prices for gasoline.