$4 Gas Coming This Spring, Nearing $5 In Some Cities By Summer

$4 Gas Coming This Spring, Nearing $5 In Some Cities By Summer
World
Like Us On Facebook
Like Us On Facebook

Maybe you’ll want to start salting away money for 2012 fuel costs now. Get ready to see $4-a-gallon gasoline in various parts of the U.S. sometime this spring, according to one prediction. Another prediction says that some of the nation’s biggest cities — such as Chicago, Los Angeles and New York — will see record Memorial Day averages of $4.55 to $4.95 for a gallon of regular gasoline.

The predictions come from two sources. One is the Oil Price Information Service in New Jersey, which provides the daily averages for the AAA Fuel Gauge Report, using retail receipts from more than 100,000 retail outlets across the U.S.

The other is the annual price outlook from GasBuddy.com, where 300,000 to 400,000 member motorists a day report and post online and through phone apps the highest and lowest local prices they see. There are more than 250 price-posting GasBuddy websites devoted to various towns and cities across the U.S. and Canada.

Tom Kloza, chief oil analyst for the Oil Price Information Service, is predicting a national average of $4.05 a gallon this spring, which would be just short of the Energy Department’s all-time inflation-adjusted record of $4.114 reached in the summer of 2008. California’s average would be higher, he said, adding that he didn’t expect it to hit the state’s record of $4.588 a gallon.

One reason, Kloza said, was that those prices will be built on oil that is significantly more expensive than the commodities trading benchmark West Texas Intermediate crude that is reported every day on the New York Mercantile Exchange (NYMEX).

The NYMEX on Friday, for example had West Texas crude trading at $98.61 a barrel, down 49 cents. But much of the oil the U.S. imports is based on Brent North Sea crude, which was trading at $110.38 per barrel in London. Other sources of U.S. crude are also more expensive, Kloza said.

“The Alaska North Slope oil you rely on in California has been trading at about $10.40 a barrel more than West Texas. Louisiana crude from the Gulf of Mexico has been trading $11 a barrel higher.”

GasBuddy.com is predicting record spring prices in the following cities: Atlanta; Boston; Charlotte, N.C.; Chicago; Columbus, Ohio; Dallas; Detroit; Houston; Jacksonville, Fla.; Los Angeles; Memphis, Tenn.; Miami; Minneapolis; New York; Philadelphia; San Francisco; and Seattle. Los Angeles could see $4.70 a gallon. Chicago could see $4.95 a gallon.

Patrick DeHaan, senior petroleum analyst for GasBuddy.com, said “Motorists who drive a SUV may want to consider calling their banking institution and obtain a credit limit increase so they can afford this summer’s fuel expenses.”

New York Times

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Preston Waters

Preston Waters is a thinker. He's not your traditional philosophical persona, however, as he leaves no topic untouched. Covering all the bases, from business to women, Preston Waters is the ultimate man's man for Gen-Y.

More In World

World Alexia LaFata

You’ll Never Lodge A Q-Tip In Your Ear Again After Reading This

Remember that episode of “Girls” where Hannah got a Q-tip stuck in her ear and had to go to the hospital to get it removed? With that tragic display of uncontrollable anxiety, Hannah was onto something: Don’t put anything in your ear that’s smaller than an elbow. Earwax serves a great purpose. Known medically as […]

Also On Elite

Sports

How Jeremy Lin Is The Most Disrespected Player In The League

The Houston Rockets have launched a campaign to woo Carmelo Anthony. Outside of their stadium, a massive billboard is displayed with Carmelo wearing a number seven Rockets jersey. Perhaps it’s not the most clever marketing strategy in league history, but the message is clear: “We want you to play for us.” The only problem is, the […]

Music

This Awesome Original Song Features 29 Spot-On Celebrity Impressions That Are Just ‘Perfect’ (Video)

This original song by YouTube user robcantor features some great lyrics and some even better celebrity impressions. His song “Perfect” features the voices of 29 famous people. Some are singers; some are actors and some are even cartoon characters. Appearances are made by Billie Holiday, Adam Sandler, Gollum, Gwen Stefani, Peter Griffin and more. The impressions alone […]

Film

3 Fictional, Fan Favorite Females Who Taught Us More Than We May Remember

The ideal evening for the average college student is a concoction of two key ingredients: a Chipotle burrito or pint of Ben & Jerry’s Phish Food (or both) and a Netflix binge. Though not everyone is supportive of this lifestyle — like your mother who urges you to stop watching “garbage” and do your laundry […]

Sports

The Impenetrable Money Mayweather: The Greatest Fighter Of Our Time

Floyd “Money” Mayweather, Jr. is the man. He dominates boxing at a rate unmatched by any other modern athlete. He vanquishes every opponent using a refined technique to execute his perfect strategy. Floyd Mayweather, Jr. is 46-0-0 in his professional career. He’s won 10 world titles in four different weight classes. But, unlike dominant boxers of […]

Sports

Bottom Line: The Top 3 Reasons Why You Should Be Watching The World Cup

Unless you’ve been hiding under a rock for the past two weeks, you’re probably well aware the 20th FIFA World Cup has been underway since the beginning of the month. Although not as popular in the US, soccer is the most widely played sport in the world. The very first World Cup took place in 1930 and […]