Gas Prices March Toward $3 Per Gallon

A dime more a gallon may not sound like much, but it adds up to $40 million more out of the driving public's pocket.

The rising price of oil has pushed up gasoline prices. Crude has climbed about 5 percent in the past 10 days, and on Tuesday it topped $90 for the first time in over two years. On Friday, benchmark oil lost 58 cents to settle at $87.79 a barrel on the New York Mercantile Exchange.

The retail price of gasoline could go higher, even if oil prices level off. Gasoline supplies have been affected by unexpected refinery shutdowns in the West and Midwest. "There has been a good deal of unscheduled maintenance recently, and that has made ... gasoline markets nervous," energy consultants Cameron Hanover said.

Analyst Phil Flynn with PFGBest in Chicago said the shutdown of a refinery in St. Croix, Virgin Islands, contributed to tight supplies on the East Coast, which could add a couple of cents a gallon to gas prices there.

Oil and gasoline prices are unlikely to fall significantly if demand picks up. On Friday The International Energy Agency raised its forecast for global oil demand for this year and 2011. IEA, based in Paris, thinks consumption in North America and emerging Asian countries, especially China, will be greater than it previously expected. If that happens, IEA said OPEC could boost supplies as prices rise. In 2008, OPEC raised production levels as oil shot past $100, on its way to a record $147 a barrel.

The Organization of Oil Exporting Countries meets this weekend in Ecuador. "Pre-meeting statements by OPEC ministers suggest the group is planning on a quick agreement to roll over existing output targets," IEA said.

In other trading on the Nymex, heating oil fell 0.93 cent to settle $2.4575 a gallon, gasoline gave up 3.12 cents to settle at $2.3093 a gallon and natural gas dropped 1.8 cents to settle at $4.417 per 1,000 cubic feet.

In London, Brent crude fell 51 cents to settle at $90.48 a barrel on the ICE Futures exchange.

Comments

[Kenz300]

03:07 PM on 01/02/2011

It is time to end the oil monopoly on transportation fuel.

Our economic security and national security require us to diversify our energy resources.

As China and India continue to grow their use of oil demand for oil will soon exceed the
available supply causing prices to rise.

Bring on the electric, flex-fuel and hybrid vehicles.

Time to ramp up alternative energy production. Wind, solar, geothermal and second
generation biofuels all need to become a bigger part of our energy supply.

Let's produce local energy and local jobs.

[castleblanca]

01:08 PM on 12/23/2010

I know of a bunch of Middle-Eastern Arabs, who believe in Santa Claus.

[ScottnLaguna]

05:40 PM on 12/13/2010

Been over $3 a gallon in CA for years

[ManwithaParachute]

04:56 PM on 12/13/2010

Gas prices will be in excess of 4 bucks towards November 2012.

[rebel9999]

01:58 PM on 12/13/2010

We've come a long way towards energy independence under Obama.

[spqesq]

01:32 PM on 12/13/2010

Easy crude supplies peaked in production in 2006. All the rest is window dressing.

[April22]

12:58 PM on 12/13/2010

Gasoline has been at $3.10 a gallon on Cape Cod, MA. for weeks!!

[staceydougherty]

12:47 PM on 12/13/2010

Wake up people! I am stunned that Huff Post is perpetuating this myth about the rise is prices. It has little to do with demand and even less to do with refinery shutdowns. Oil is priced in dollars and the value of the U.S, dollar is headed south because the Fed chose to pump money into the economy with QE2. Bernanke says it's not the same as printing money - but it has the same effect - so WTF?

Gas prices will be over $4 by next summer and food prices will be through the roof. Hold on tight kids. The ride ain't over.

[dgoose50]

01:16 PM on 12/13/2010

And the printing presses keep running /Fan All those 100 dollar bills wasted because the presses running 24/7 couldn't keep up.We can't even do that right.

[thewholestory]

11:49 AM on 12/13/2010

"Gasoline supplies have been affected by unexpected refinery shutdowns in the West and Midwest".

Unexpected my butt!

[NYC80]

08:56 PM on 12/12/2010

You will not do anything because any candidate that the right or left put out there are paid and trained by the corporate elite. Just like the Hero Obama and paid puppet to deceive the people.

[dgoose50]

01:18 PM on 12/13/2010

O,s next trick is to walk on water.Jesus for president.

[whyus]

07:24 PM on 12/12/2010

Maybe it'll start getting those SUVs off the road again.

[Kenz300]

05:53 PM on 12/12/2010

It is time to end the oil monopoly on transportation fuel.

Fueling stations should have gas, ethanol, diesel, biodiesel, CNG, electric charging stations
and battery swap out points.

We need to DIVERSIFY our transportation fuels and give consumers a choice at the pump and
add some competition.

Bring on the electric, flex-fuel and hybrid vehicles.

[gtoddyt5]

03:50 PM on 12/13/2010

Yeah, I wanna see if my gasoline engine will run on CNG!

[Rickerman]

04:28 PM on 12/12/2010

http://www.youtube.com/watch?v=mLyoFu_I1Us

[samilli3]

12:56 PM on 12/12/2010

interesting that this happens after the GOP won the house...an interesting coincidence.

[PenFighter]

03:02 PM on 12/12/2010

Guess they figure that ends any talk of a windfall profits tax passing the House,

[LinkSync]

11:37 AM on 12/12/2010

The ongoing Middle East Situation is all about profits for Energy Companies.
It has nothing to do with terrorism or ideology or stable government or anything like that.

War is good for big business, always has been, and as always is BAD for society and for real economics.

Still when regular folks have zero voice in their own government what do you expect?
Mercy?
From Corporate Profiteers?
Please!

They want every penny, no matter how you are hurt.

BTW the price of oil has almost nothing to do with the price of gas.

If you look back historically you will see the disconnects and come to understand that there is something else going on that is far worse than disinterested investors, those that have no actual stake in the value of oil and that remain unregulated, falsely driving up the price of that oil to take profits, which is bad enough.
Nope that isn't the full story here folks.

It is far dirtier than that, and it speaks to the foundational aspects of our current market model as a means to EXTRACT wealth from people rather than to fund valuable efforts at building companies that bring strong corporate citizenship to the table and ADD to our society as a result.

Remember when IBM, FIRESTONE, GOODYEAR, MOTOROLA, GE, MAYTAG, SEARS and all the rest used to mean something?
No more.

Now they are just bets at the casino, as they ALL make their crap in China.

[PenFighter]

12:09 PM on 12/12/2010

Excellent post. Fanned with feeling!