Consumers are really going to be feeling the pain next weekend when they hit the road for Memorial Day weekend.
Gasoline prices have risen to yet another new high today, climbing to a national average of $3.73 as the summer driving months are on our doorstep.
Sadly, gasoline prices are showing no signs of cooling, and many analysts have already predicted $4 a gallon by the middle of the summer. At the current pace, $4 gasoline may seem cheap before it is all said and done.
The main reason for the price acceleration is, of course, crude prices. Oil prices have doubled over the past year and sent gasoline prices through the roof. Oil prices are still showing no signs of cooling off either, and are still trading above $125 a barrel. This is causing many analysts to question whether this year we will see the typical gradual decline of oil prices through the summer.
Let's hope they are wrong, or else we will really be feeling the pain in a few more months.
One thing that could help ease gas prices would be if we start to see a significant decrease in demand this summer. Will the current record high prices lead to lower demand, or will Americans defy the high prices and continue to take their summer vacations as normal? I'm sure a sizable segment of the population will fall into both categories, we will just have to see to what degree.
Have you let the current run up in prices alter your driving habits? How are you going to allow prices to effect your summer vacation plans? Will you continue to travel as you normally would, or will be you be staying a little closer to home this summer?
Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.
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Reader Comments (Page 1 of 1)
5-13-2008 @ 3:32PM
Tam said...
Gas prices rose here in central Ohio to 3.95 today. I'm thinking by the middle of summer, sadly, 4.00/gallon will seem like a "bargain".