Ask an expert: Gas prices going up or down?

MSN Money's Charley Blaine explains what's influencing what we end up paying at the pump.

By MSN Money Partner Jun 13, 2013 12:57PM
Nationally, the average price for a gallon of regular gas was $3.63 this week, up five cents from a month ago and nine cents from a year ago, according to AAA. So with the summer driving season up ahead, what should drivers expect?

In this video, MSN Money's Charley Blaine explains what's influencing gas prices and what to expect for the rest of the summer.

Buying gas (© moodboard/Corbis/Corbis)Oil prices have been falling in the past few days, pressured by a downbeat outlook for global crude demand as growth in China and elsewhere slows, and by evidence that U.S. crude supplies are rising. Does that mean we should expect lower prices at the pump this summer? Not necessarily.

Gas prices, says Blaine, are influenced largely by seasonal factors. When refiners make the more expensive gasoline for the driving season, typically in spring and early summer, prices tend to go up. But then they start making the cheaper winter gas, typically in late summer, prices tend to go down.

Blaine further discusses investment opportunities in the sector, especially regarding refiners such as Tesoro (TSO), Valero (VLO) and Chevron (CVX). He noted that as crude prices go down refiners' profit margins go up. 

The discussion about gas prices and investing in this sector continues over in MSN Money's Facebook community.

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5Comments
Jun 13, 2013 4:14PM
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As long as Greedy Wall Street Traders are running the show, don't expect prices to drop. Record inventories, low demand, absolutely no basic fundamentals to support oil being over $96 a barrel. Until Washington comes out of their coma and forces oil speculators to take full physical delivery of the product, the oil fetish on Wall Street will continue. The fat pigs are getting fatter by the day.
Jun 13, 2013 4:01PM
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A bunch of BS. Price fixing. Wake up and smell the coffee.
Jun 13, 2013 3:20PM
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Who cares? I burn propane in my car. $1.95 gallon. Rock on!
Jun 13, 2013 6:19PM
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Hey Red Bill....What else do you burn in that car or smoke.?...eh.

 

All I can picture is a Big BBQ rocking down the street...Kinda like a bomb..hee,hee (sorry)

Jun 13, 2013 3:41PM
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Here come the inflation!!!!!  Gas 6 months ago $3.34/gal today $4.06/gal, beer 2 months ago $5.45/6pack today $7.56/6pack. 5000cc window air conditioner last year $99 this year $154. Here come the inflation!!!!!  Trouble is who has the money to pay higher prices?????  
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