Nationwide gas prices to reach $3.00 by the weekend
As we head back to work after the long Forth of July weekend, oil prices are at :
Oil prices jumped to a record above $75 abarrel on Wednesday, propelled by a rally in gasoline that analystssaid could send average U.S. pump prices past $3 a gallon by theweekend.
Recent snags in oil-shipping and refiningalong the Gulf Coast have raised traders' concerns about motor-fuelsupplies at a time when demand continues to rise in spite of soaringprices. The start of a new fiscal quarter also brought more speculativemoney into the market, brokers said.
"Everybody thought we'd hit a price that wouldcreate permanent demand destruction. But demand for gasoline isrising," said Alaron Trading Corp. analyst Phil Flynn.
Contrary to the oil shock of the 1970s, this is a demand-side problem. Demand is multiplying in places like China and India, meaning any inconsistency in supply whatsoever leads to higher gasoline costs. With the Gulf Coast hurricane season starting abnormally early this year, it is unlikely that prices will significantly drop this summer.
----------------------------------------------------------
Other blogs writing about this issue: , , , , , , , , , .
Comments