With the holiday weekend upon us, retail gasoline prices are soaring across the nation as the crude oil market prices increase dramatically.
According to the weekly AAA gas price survey released today, average gasoline prices climbed $0.12 this week to $2.72 per gallon.
In my home city of Baltimore, gas prices averaged $2.77 a gallon. (By the way, to see gas prices in your area go to www.[insert your state]gasprices.com i.e. www.marylandgasprices.com or www.newyorkgasprices.com)
Crude prices approached near record highs this week touching $69.60 per barrel, only $1.15 below the all-time record high set back last summer in the wake of hurricanes Katrina and Rita.
Front month oil futures have skyrocketed amid concerns that shipments from Iran, Nigeria and Iraq might be jeopardized by security threats.
And unfortunately for consumers, there’s no relief in sight.
Motorists can expect to see higher gas prices this summer as crude prices are likely to remain near $70 per barrel.
California Dreamin’
Many areas of Southern California have already popped the $3-a-gallon mark.
According to the Automobile Club of Southern California’s Weekend Gas Watch, the average price of self-serve regular gasoline in the Central Coast area averaged $3.006…not for super, but regular unleaded.
This is just the beginning.
$3 Gas is Coming to a Station Near You
Brace yourself. Because gas prices are going over $3.
In fact, the editors of Wealth Daily believe they’re going way over $3…over $4 even.
Retail regular unleaded gasoline will touch $5 by July.
A bold prediction yes. But look at gasoline futures today.
In the past three weeks, front month gasoline futures have climbed roughly 20%.
And it ain’t stopping here, brother.
Motorists will push the demand for gasoline ahead of the summer driving season and the gasoline additive MTBE will be phased out by May 9th, replaced with corn-based ethanol.
Also, as oil continues its upward motion in the face of worldwide geopolitical and security concerns, gasoline futures will only be pushed higher…much higher.
Prepare to cough up that fin for a gallon of gas.
