I know that no one needs to be reminded that gasoline prices continue to rise, even reaching new records. Yesterday, gas prices passed the previous records set following the harsh September 2005 hurricane season. According to the Energy Department, the national average for a gallon of gasoline has risen to $3.103 yesterday, which passed the previous record of $3.069 set in 2005, after hurricanes Katrina and Rita. How much longer can we possibly see prices continue to rise? Unfortunately, I don't think that we have seen the top of the market just yet.
We still have not even hit the high-demand summer-traffic months that are sure to add even more upside pressure on prices at the pumps. The main cause of the recent run-up in prices has been high demand when major oil companies has been forced to shut down refineries for maintenance and repairs. Luckily, the refineries are getting back on-line, and just last week we saw a greater-than-expected rise in gasoline inventories.
While I wish I could tell you that you should see prices fall some time soon, I just don't see that happening in the near future. If I had to guess, I would think that prices should level off over the next month, but I would still expect to see prices remain at, or slightly above, the $3 mark through the remainder of the summer months before we see them starting to retreat. That is, assuming that this years hurricane season doesn't prove to be another tough one. At least that isn't something that we will have to worry about for another 4 or 5 months.
So with all this talk about high gasoline prices, I am curious to hear what you are dishing out at the pumps. Let me know where you are from and what you are paying these days in your area.
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor'sObserver.
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Reader Comments (Page 1 of 1)
5-15-2007 @ 3:38PM
Alvin Schlossberg said...
paying 3.07 the last time I bought gas. If the gas companies are making astronominacl profits, why can't they take a little less for their gasoline and save the consumer a few dollars and everybody w ould think you are great and care about the little guy.