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Are Gas Prices Going Up

Are Gas Prices Going Up

The average U.S. Are Gas Prices Going Up is now $4.17, the highest ever, and in some places, it’s already well into the $5 and even $6 range.

The culprit is a combination of factors: an increase in global demand; tensions with Iran; the threat of more sanctions on Venezuela; and the fact that most refineries are down for maintenance, which means there’s less gas to go around.

The average U.S. Are Gas Prices Going Up is now $4.17, the highest ever, and in some places, it’s already well into the $5 and even $6 range. The situation at the pump is so bad that even President Obama has called for a probe of oil companies, whom he says are reaping “obscene profits.”

While there are many factors that determine the price of crude oil, let’s focus on what most people care about: Will prices fall? And if so, how soon?

The short answer: Yes, they will likely fall — but not nearly as much as you’d hope.

Overall, gas prices should go down when oil prices go down (which they have) and refineries convert their winter-grade oil to summer-grade fuel (which they are now doing). But don’t expect gas to drop anywhere close to where it was before the recent run-up. That would require a major economic slowdown or a significant change in geopolitical tensions in the Middle East — neither of which is likely.

The average U.S. gas price is now $4.17, the highest ever, and in some places, it’s already well into the $5 and even $6 range.

The national average hit a record high of $4.11 per gallon on July 17, 2008, at the height of a summertime spike that pushed prices even higher in some locales. But it never hit or exceeded $4 nationwide until May 9 of this year — and has steadily climbed since then.

Analysts say a number of factors are contributing to the latest spike:

Production is down because oil companies are “rationing” oil production to keep prices high during this economic downturn, as they did during the Great Recession of 2008-09, according to Tyler Suiters of Consumer Energy Alliance.

Demand is up because of increased worldwide consumption from recovering economies in Europe and Asia, says GasBuddy’s Patrick DeHaan. “They’re consuming more oil than they have in previous years,” DeHaan said. “That puts upward pressure on prices.”

Global demand for gasoline could increase by 1 million barrels per day in 2011, according to the Energy Information Administration (EIA), which added that demand would be driven by recovery from the global recession in 2009 and continued

It’s not even summer yet, and the price of gas is already at record highs. The average U.S. price is now $4.17, the highest ever, and in some places, it’s already well into the $5 and even $6 range.

Gas prices are expected to go up further this summer, potentially setting further records. If you’re wondering why gas prices are so high, here are a few reasons:

Rising crude oil prices. Crude oil is a key ingredient in gasoline, and as the price of crude goes up, so do gas prices.

Refinery maintenance season. Once a year, refineries shut down some of their operations for spring maintenance work that includes replacing equipment and getting ready to produce the more expensive summer blends of gasoline required in many parts of the country. As a result, demand often exceeds supply during this period.

Political tensions in oil-producing countries. This factor is out of everyone’s control, but it can play a major role in dictating oil prices. Even when there isn’t outright war in an oil-producing region such as Iraq or Iran (as there has been in recent years), political uncertainty can make investors nervous about their investments in those countries’ oil fields — which are often a

According to AAA, the average U.S. gas price is now $4.17, the highest ever, and in some places, it’s already well into the $5 and even $6 range.

It is easy to see why these high prices are causing so much pain for drivers. In the last two weeks alone, gas prices have increased by well over a dollar a gallon in many areas around the country.

The average U.S. price for a gallon of self-serve regular gasoline is now $4.17, the highest ever, and in some places, it’s already well into the $5 and even $6 range.

The high prices are a result of oil prices approaching $120 per barrel — prices not seen since last July — and of course, the normal spring increase in demand as people get ready to travel for summer vacations.

How long can these high prices last? Well, if you’re worried about the future of gas prices, you should probably hope that they go up even higher. You heard me right. Before I explain why, let me note a few predictions from some analysts.

While the national average for a gallon of regular unleaded is $4.17, it’s already well into the $5 and even $6 range in some places, including Alaska, California, Hawaii and Connecticut, according to AAA.

The national average for a gallon of mid-grade gasoline is now $4.31, while premium gas averaged $4.41 a gallon. Diesel fuel averaged $4.89 a gallon nationwide.

The price increase is due to an increase in the cost of crude oil, which has climbed from about $100 a barrel to more than $120 a barrel over the past year. Experts say the recent increase was helped by the unrest in Libya and other oil-producing countries in North Africa and the Middle East.

“The situation in Libya is not getting better,” said Patrick DeHaan, senior petroleum analyst for GasBuddy.com. “It’s still continuing to deteriorate.”

DeHaan said that prices are likely to keep rising until at least early May because there aren’t many new supplies coming from Libya and other parts of North Africa and the Middle East.

Here’s what’s driving prices up and some tips for saving money.

The average U.S. Are Gas Prices Going Up is now $4.17, the highest ever, and in some places, it’s already well into the $5 and even $6 range.

Here’s what’s driving prices up and some tips for saving money:

Supplies are limited: The U.S.’s crude oil supplies are at a 20-year low because of refinery shutdowns due to hurricanes Katrina and Rita last year. Inventories of gasoline were also down. While supplies may rebound in the next few months, experts expect that it will take until 2007 for prices to go down significantly.

Demand is high: We use more energy than ever before (for example, we drive more cars that get poorer gas mileage), which means we need more crude oil to produce gas. Plus, China and India have growing economies that demand more energy as well — not just for their own use but for making stuff to export to us too.

Gas prices are set on international markets: The price we pay is affected by what the rest of the world pays because the price of crude oil is determined by worldwide supply and demand. Last year, China imported 900 million barrels of oil

The average U.S. Are Gas Prices Going Up is now $4.17, the highest ever, and in some places, it’s already well into the $5 and even $6 range.

Are Gas Prices Going Up are likely to keep rising for at least a few more weeks, experts say. And some regions of the country will be hit harder than others.

Rising Are Gas Prices Going Up and the recent inflation spike have been blamed on everything from the weak dollar to the falling value of Apple stock to the civil unrest in Syria and Ukraine to speculators driving up crude oil prices. But there are some basic economic principles that explain why you’re paying so much at the pump right now — and what might happen if things get even worse.

The average U.S. Are Gas Prices Going Up is now $4.17, the highest ever, and in some places, it’s already well into the $5 and even $6 range.

The last time gas prices were this high was right after Hurricane Katrina in 2005. What’s causing them to spike?

There is a lot of speculation over what is happening, with three main theories:

1) The Federal Reserve Bank’s decision to print money

2) Iran’s threat to close the Strait of Hormuz

3) Oil supply and demand are out of balance

All three are probably contributing to higher prices at the pump. But the primary reason is something that most people don’t realize: The U.S. dollar declined by more than 29% in value between January 2002 and February 2012 against a basket of foreign currencies including Japanese yen, British pounds, Canadian dollars, euros and Swiss francs.

The average U.S. price is now $4.17, the highest ever, and in some places, it’s already well into the $5 and even $6 range. The good news is that some relief may be in sight: GasBuddy.com forecasts that gas prices will hit their peak this week and then begin to decline as demand tapers off during the summer driving season and refineries begin to switch over from winter to cheaper summer blends of fuel, which have fewer environmental requirements.

Gas price hikes are partly due to a jump in the price of oil, which is hitting new highs on fears of an outbreak of war in Iran, a major oil producer. But much of it also stems from refinery problems along the West Coast and in the Midwest, according to GasBuddy.com senior petroleum analyst Patrick DeHaan.

“There’s really no two ways about it: Refineries aren’t operating at full speed,” he said Tuesday. “Some are even down for maintenance right now.”

Gas prices are up again. The average U.S. price is now $4.17, the highest ever, and in some places, it’s already well into the $5 and even $6 range.

The problem is that we don’t have much oil to spare. The Nigerians are having to cut production because of political strife, and Alaskan production is declining.

With demand relatively stable despite high prices, there’s only one way for this to go: higher still.

Gasoline prices are going up around the country, and many states are seeing an average of $4 per gallon or more. As usual, California is leading the way, with an average price of $4.34 per gallon. Other states in the upper tier include Alaska ($4.31), Hawaii ($4.30), Connecticut ($4.25), New York ($4.19) and Illinois ($4.17). All told, drivers in 11 states are paying $4 or more for gas, while drivers in 24 states are paying more than $3 per gallon.

And it’s only going to get worse from here as we approach summer — historically, the most expensive season for gasoline prices

Some experts have predicted that the national average will approach $5 a gallon this summer. The reason, of course, is the same one that’s sent oil prices skyrocketing: unrest in the Middle East and North Africa. The price at the pump has already climbed more than 30 cents a gallon just since January 1, when it was $3.28 nationally.

In fact, some parts of the country are already paying $5 or even $6 a gallon, according to AAA’s Daily Fuel Gauge Report. Those include Alaska ($5.49), Hawaii ($5.29), California and Connecticut ($4.99), and Washington D.C., New York and Illinois (all at $4.89).

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