Why gasoline prices will keep rising
The futures market points to more increases, and refinery accidents have hampered US production.
That's because gasoline futures -- a crystal ball for gas prices -- have spiked 19% in the past two months, The Wall Street Journal reports. That has helped trigger the price increase at the pump, though so far gas prices have risen only 7.2% in the same period.
Because pump prices follow futures action by several weeks, "drivers have yet to feel the full extent of the recent rally," John Biers and Dan Strumpf write.
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There are two more reasons to suspect gas prices will continue rising. Crude oil futures are up 27% from late June, and accidents at several U.S. refineries have dented production. Chevron's (CVX) refinery in Northern California, for example, is at 60% capacity after an Aug. 6 fire, Bloomberg reports.
Gas is averaging $3.72 a gallon in the U.S., according to AAA's Daily Fuel Gauge Report. That's up from $3.70 a week ago and $3.47 a month ago. The Energy Information Administration pegs this week's figure slightly higher at $3.74 a gallon.
The administration says gasoline inventories are at their lowest level for this time of year since 2008, Bloomberg reports.
"I don't expect any relief in gasoline prices until after Labor Day," independent fuel consultant David Hackett told Bloomberg.
The uptick in fuel prices may be a factor as families plan their end-of-summer vacations. Plane ticket prices are going up, led by Southwest Airlines' (LUV) fare increase on short one-way trips. Delta (DAL) and other rivals appear to be following Southwest's lead. If successful -- and it looks like it will be -- the increase will be the fifth time this year airlines have been able to raise prices.
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Am I the only one tired of hearing different excuses when the gas prices go up? I've heard more excuses than a cheating spouse coming home late. If it's not oil speculators, then it's the weather, corn crops, Obama, Bush, Romney, dandruff, pet population, vd, gangsta rap etc. enough finger pointing already.
TOO many people (with vehcles in the world), that's the problem, no it's IRAN, that's the problem, no Israel, that's the problem, no it's Obama, we are sure, no, Saudi's are the real problem, no it's supply, NOT demand, we need to drill everywhere, no wait a minute, it's got to be Romney, now we are on to something, just wait till he gets in we will get on him right away ! NO, LET'S ASK HIM NOW-- WHAT IS THE GRAND PLAN FOR THE FUTURE MITT ? Wait, the heck wtih the oil prices we need to ask about jobs and how to get all the jobs back from China that went over there the last 30 years ! And while we are at it will you close the borders Mitt? This is drugs, illegals loading the medical system and crime ifiltration BY the cartels. Awww heck forget it- - NUTHIN IS GOING TO GET RIGHT !
We as a nation are now a oil exporting country I was in Long Beach, Calif three years ago. Long Beach has a lot of oil wells (google signal hill for example). Most of these wells were shut down. Another thing, Mr. Obama stated that that canadian tar sand oil would be exported.
This summer I was back there. All of the pumps were going fill tilt. They must have magically found more oil. The other thing I noted was there were 7 empty tankers off shore and an eight that was being loaded. Could tell because the water line kept getting lower in the wate each day. There were also barges tied up to the side of this tanker. Also, it should be noted that it was not Romney, but that darling great communicator (Regan) that started this mess when he allowed the big oil companies to start merging (think EXXON/MOBILE,BP/AMACO etc).
And, since the 80's we have had at least one oil well, or oil refinery fire each year. This year we had 2. OIL COMPANIES HAVE ALSO SHUT DOWN AND REDUCED OUR refinery output each year.
obammy is too stupid to figure out that the economy may actually have something to do with the upcoming election. He is stupid like the devil himself...............
Are Wall Street speculators the so called experts this article refers to? The time has come for the American people to rise up against speculative trading in all energy and food futures. These items should be totally regulated by supply and demand.
Why don't you just tell the truth. Gas prices are higher because the oil companies need to make new record profits so they get their year end bonuses. They keep contributing to all the politicians so they keep their mouths shut.
Plain and simple.
Another year, more pissing and moaning about gas. Such is life in America.
Here's an idea, use less! Doesn't make much sense to drive yourself to work in that Suburban now, doe it?
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