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This high demand usually translates into higher gasoline prices, although that's not always the case. Price increases generally occur when the world crude-oil market limits their production.
United States depends heavily on foreign oil supplies. The largest entity impacting the world's oil supplies is the Organization of the Petroleum Exporting Countries (OPEC) which constitutes of eleven nations. OPEC is responsible for 40 percent of the world's oil production and hold two-thirds of the world's oil reserves. When OPEC wants to raise the gas prices it simply reduces the production. The short supply and the possibility of future reductions cause the prices to jump up...
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