Gas prices could reach $3 by summer
Just when you thought it was safe to fill up the tank, experts say gasoline could be selling for $3 a gallon by summer.
Fears about war in the Middle East, and refinery cutbacks, coupled with the cost of getting fuel to market and oil companies' need to make a buck, will all contribute to the increase, said Bob van der Valk, a Washington-based fuel-price analyst.
Gasoline prices have bottomed out, he said.
Since summer, Americans have seen those prices go down, thanks to dwindling demand in the midst of a recession that had consumers and businesses cutting back.
After peaking above $147 a barrel in July, fears of a prolonged global recession and crumbling worldwide demand pushed crude prices down more than 70 percent.
The average price of a gallon of regular unleaded on Friday in the Los
Angeles-Long Beach area stood at $1.81, and the national average was at
$1.62, according to the Auto Club of Southern California.
In Riverside and San Bernardino counties, the price was $1.80.
But those prices have trended upward lately.
"The West Coast is always a hotbed, but I would think that something in the realm of $2.25 to $2.75 a gallon might represent a spring-summer peak in that part of the country," said Tom Kloza, chief oil analyst at the Oil Price Information Service.
Though they will increase, prices will be tempered by loosened credit markets, with commodity prices and the cost of gasoline staying down, Kloza said.
The silver lining in the bad news?
Consumers won't see the $4.50-a-gallon costs they saw in the summer of 2008, Van der Valk said.
Staff report and The Associated Press
In Riverside and San Bernardino counties, the price was $1.80.
But those prices have trended upward lately.
"The West Coast is always a hotbed, but I would think that something in the realm of $2.25 to $2.75 a gallon might represent a spring-summer peak in that part of the country," said Tom Kloza, chief oil analyst at the Oil Price Information Service.
Though they will increase, prices will be tempered by loosened credit markets, with commodity prices and the cost of gasoline staying down, Kloza said.
The silver lining in the bad news?
Consumers won't see the $4.50-a-gallon costs they saw in the summer of 2008, Van der Valk said.
Staff report and The Associated Press
I remember that someone last summer said we would see $5 a gallon gasoline. It didn't happen. As far as going back to $3, I'll believe it when I see it.
Well Dan, that might be a little extreme, lol. I would like to see some compensation from Iraq since we have sacrificed our dollars and lives to protect and rebuild. They have a HUGE profits (billions) as the US goes deeper in debt. Some appreciation in the form of oil. Our gubmint is too stupid to request/demand that, it makes too much sense.
How does a summer peak of $2.25 to $2.75 a gallon translate into $3 a gallon *by* summer?
You go Dan!
I think that gas is going higher as well but $3.00 might be a stretch. I am not too worried about it anymore since I "locked in" my gas for the next year at ~$1.50 a gallon. I searched around a few sites but the one in ended up using was this site petrofix.com. I don't really know where prices are going, but it is one less thing that I have to worry about.