Bend Over – Gas Prices Getting Up
In the event you aren't broke already, this should do it. Oil prices spiked Wednesday because Iran has been holding 15 British soldiers and the world's oil markets hostage. Phil Flynn, vice president and energy analyst at Alaron Trading said, "Even though this crisis has ended, the oil market is still on guard that the tensions in the Middle East are going to continue." Flynn continued, "Things are looking pretty bad for the upcoming summer driving season. Everyone asks me, will we see $4 a gallon? And the answer is, there is a strong possibility that we may see $4 a gallon."
Flynn said he believes gasoline prices will head into record territory, currently a nationwide average of $3.07, by the height of the summer season. "This is the time of year when we're supposed to be building supplies, but it seems like the refiners just can't get ahead of what has been very, very strong demand," he said.
Today's report shows that the national supply of gas is at the low end of its average range for this time of year, meaning the United States will have less gas in the tank before the peak summer driving season in the coming months. Analysts said that puts the country on the edge, making any disruption in supply, such as a hurricane in the Gulf of Mexico refining regions or an expansion of the crisis in the Middle East, that much more dangerous.
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