Could 2013 gasoline prices hit record highs?

[jonjon]

Could 2013 gasoline prices hit record highs?http://www.usatoday.com/story/money/nation/2013/02/19/2013-gasoline-prices-could-flirt-with-all-time-highs/1930681/

GAS PRICES VARY WIDELY BY STATE

The national average for a gallon of regular gasoline is $3.75, up 45 cents since Jan. 20. Experts say prices should continue rising at least 5 cents a week until early April. But across the USA, average prices range from a low of $3.19 a gallon in Wyoming and Montana to $4.17 in California and $4.28 in Hawaii. A big reason for the difference: state gas taxes.

• 

 

• $3.189 - $3.589

• $3.590 - $3.647

$3.648 - $3.744

$3.745 - $3.831

$3.832 - 4.282

Average prices 2006 - 2013

Source: AAA and the Oil Price Information Service; AAA Fuel Gauge Report

Kevin A. Kepple, USA TODAY

Gary Strauss2:49p.m. EST February 20, 2013

Gasoline prices typically rise heading into peak spring and summer driving seasons. But 2013's runup is earlier and faster than in previous years.

(Photo: Joe Raedle, Getty Images)

STORY HIGHLIGHTS

• Gas prices, now averaging $3.77 a gallon, up 47 cents since mid-January

Prices in Southern California are already nearly $5.20 a gallon

National record is $4.11, set in July 2008

After sending consumers into sticker shock the past month, how much more can gasoline prices climb?

Another 20 to 50 cents a gallon — a level that could propel the cost of gasoline, now $3.77 a gallon, to all-time highs, some experts say.

Gasoline prices typically climb from February to Memorial Day on expectations of rising consumption and costlier summer-blend gas. But so far this year, prices are surging sooner and faster than ever before — up 47 cents since mid-January.

24/7 WALL ST.: States with the highest gas prices

Consumers in some metropolitan areas, such as Southern California, are already paying nearly $5.20 a gallon, up more than 75 cents since December lows.

"The gas petro-noia season moved up this year,'' says analyst Tom Kloza of the Oil Price Information Service. "A lot of speculators bet on higher prices beginning earlier in the year."

Kloza and other longtime industry observers are sticking to forecasts that prices will peak at about $3.95 by early April. But others say prices will eclipse July 2008's record $4.11.

"Lots of people are panicking, but there is room to go higher,'' says Atlas Commodities oil broker Carl Larry, who expects $4.10 to $4.25 a gallon gasoline.

Larry's rationale? The sluggish economy and stubbornly high unemployment rate has done little to curb consumer demand. If either gains momentum, prices will rise. Moreover, political unrest in the oil-rich Middle East, refinery woes or prolonged natural disasters could cause additional spikes to crude oil and wholesale gas prices. "A lot could happen to make prices go up,'' he says. "I don't see a lot to push prices down."

Kloza, however, says consumers have balked at $4-a-gallon gas in the past and are likely to cut back as prices approach those levels.

"Crude oil is now about $96 a barrel. It was at $145 when gasoline prices hit the $4.11 record," says Kloza, who expects the recent run-up to lose steam.

"Whatever you pay on St. Patrick's Day will be considerably more than you'll pay on July 4th or Labor Day," Kloza says.

Crude has yet to test January's seven-month peak of $98.25 a barrel, notes Brian Milne of energy tracker Telvent DTN.

"Based on what we've seen up to this point this year, I definitely see more upside, but it will be difficult to puncture through $4 a gallon and stay above it,'' says Milne, who expects recent price jumps to slow to 5 cents a gallon a week over the next month.

Prices are expected to remain highest in California, the Midwest and Northeast, Kloza says. California currently averages $4.18 a gallon, highest in the continental U.S. Lowest: Wyoming, averaging $3.20.

[MrFnHappy]

I just paid $3.89/gl....  

[SgtFuryUSCZ]

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Bummer....  we're driving 'OlSarge's MB Sprinter RV through 5 of those States this Summer....

Good thing she's a diesel, but still.... dang!

[gymrat76541]

Oil Companies post record high profits EVERY year.

Check the stats!

So how do you suppose they maintain the trend?

They shutdown a refinery or two or create a problem somewhere in the system.

Last years excuse was oil problems in countries America does not even get oil from!

It's NOT funny but this is the same greed that is sinking our economy.

[SgtFuryUSCZ]

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They say it has to do with inadequate abilites by refineries to convert the blends from season-to-season...

 

We say   ..... just because you treat US like we're stupid, doesn't mean we are.

 

The USA has enough dead dinosaurs to keep US independent til the cows come home.... 

We know what the real problem is: greed.

[crnamiss]

Its amazing how they post record profits each quarter and show those nice commercials on tv like they care about the consumer! I dont know if there is any other industry that shows such blatant greed and unconcern for our country.

They hold us hostage because they can....

[gymrat76541]

What gets me MOST of all is that their lobbyist pay off our political leaders in plain sight - without regard for our knowing. That is business as usual in Washington.

Well of course there are no laws to prevent oil companies from taking advantage!

Same thing happens in internet, cable, etc, etc.....................