Pain in the Gas: Prices Jump 5 Cents in Single Weekend, Highest Ever for This Time of Year
- Posted on March 12, 2012 at 1:20pm by
Jonathon M. Seidl
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NEW YORK (AP) — The price of gasoline jumped by nearly a nickel over the weekend and is now $3.80 per gallon.
That’s the highest ever for this time of year. Pump prices have risen an average 52 cents this year as refineries and wholesalers pass along the higher cost of crude oil. And this month they’re getting an additional boost as investors bet that supplies will shrink ahead of the summer driving season.
It’s an easy bet to make, independent commodities trader Jim Ritterbusch said. Supplies tend to fall in April as refineries sell off their existing gasoline inventories to make room for a different blend that’s required in the summer. And driving tends to go up in the summer as schools go on vacation.
“Every year between March and May, you have a lot of people buying into this market,” Ritterbusch said. “They’re trying to stay ahead of the crowd” and buy gasoline while it’s still relatively cheap.
The Oil Price Information Service says gas prices could rise as high as $4.25 per gallon. Prices will likely peak in late April, then fall through the summer as gasoline markets look ahead to a slowdown in travel during the fall.
Already drivers in several states including Illinois, New York, Michigan, Connecticut, Oregon, Washington and the District of Columbia are paying prices around the $4 mark. California drivers are paying an average of $4.36 per gallon.
Drivers in Hawaii are paying the most at $4.44 per gallon, while those in Wyoming are paying the least at $3.30 per gallon. Prices vary throughout the U.S. due to differing state taxes, transportation costs and other regional expenses.
The recent jump in prices has made gasoline a major topic of debate during the presidential campaign. Republican candidates have criticized President Obama for not doing enough to keep prices under control. Obama has countered that Republicans are ignoring steps his administration has taken to increase energy security, and that they’re offering unrealistic solutions to a global pricing problem.
In his weekly address, Obama said over the weekend that domestic oil production has increased to an eight-year high under his watch. He also stressed that America must find ways to reduce oil consumption – not simply drill for more.
“With only 2 percent of the world’s oil reserves, we can’t just drill our way to lower gas prices,” Obama said. “Not when we consume 20 percent of the world’s oil.”
Oil prices fell Monday after Chinese trade data suggested a weakening global economy. China reported a slowdown in growth in both imports and exports in its February trade data over the weekend.
Benchmark West Texas Intermediate gave up $1.06 to end at $106.34 per barrel in New York. Brent crude fell by 64 cents to end at $125.34 per barrel in London.
Natural gas dipped to a new 10-year low, falling by 5.5 cents to end at $2.27 per 1,000 cubic feet. Natural gas prices have plummeted this year thanks to a recent boom in production and weak heating demand this winter.
In other energy trading, heating oil fell by 2 cents to finish at $3.24 per gallon and gasoline futures gave up nearly a penny to end at $3.32 per gallon.
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Follow Chris Kahn on Twitter at http://twitter.com/ChrisKahnAP
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SamIamTwo
Posted on March 13, 2012 at 11:41amAh, more retirees going back to work, eh? prob so…
Report Post »steveh931
Posted on March 13, 2012 at 11:36amI was in Huntington Beach this past weekend and paid $4.53 per gallon for 89 Octane.
Report Post »ConservativeKen
Posted on March 13, 2012 at 8:16amGas prices jumped only 5 cents in a single weekend??? I went to the VA, gas prices were $3.24. When I left the VA less than a half hour later, gas prices were $3.50. That’s a 26 cent jump within thirty minutes. The other day gas prices were $3.73. In one day gas prices jumped 26 cents to $3.99. Yesterday gas prices dropped from $3.99 down to $3.97. Next 26 cent jump will have us at $4.23. According to Obama this is a good thing??? No what is good will be the systematic removal of him and his administration in November. We can’t afford another four years of Obama.
Report Post »Ruler4You
Posted on March 13, 2012 at 8:39amThe communists have said they want $5.00 a gallon gas this summer. I’ve heard the rhetorical commentary of the POTUS and the Secty. of Energy and others within this administration.
Punitive energy prices are what the administration WANTS. It’s the direction of their policy.
Claims that “oil production and gas refining are up.” Are meaning less rhetoric. The oil being pumped up and the gasoline being refined are being exported to other nations. It’s not being put into our energy infrastructure.
You don’t have to be an economic genius to know that “IS” an effort to do two things: 1). be able to SAY production is up 2). keep prices high.
Actually, by using our resources and refining capability we ensure longer term high prices because of futures delivery contracts for the exports. Demand in the U.S. is way down. WAY down. Deliveries of middle eastern oil have dropped significantly. But prices are still rising.
don’t listen to what the communists say. watch what they DO.
Report Post »Hope_and_Restore
Posted on March 12, 2012 at 9:13pmWatching prices on the drive home each day has become the new entertainment. Prices here have gone up 43 cents in 2 1/2 weeks. On more than one occasion it’s gone up 5 cents during the course of the day.
Report Post »Stoic one
Posted on March 13, 2012 at 12:01amHA! I have seen 3.30 in the morning and 3.79 in the evening on the same day…..The Iranian pres passed political gas or something.
Report Post »deano24
Posted on March 12, 2012 at 8:44pmThis morning gas was $3.97. After I got off work it was $4.07.
Report Post »rottiesforfreedom
Posted on March 12, 2012 at 8:24pmRemenber who said under my policies energy prices will have to sky rocket . But now the great has no control over gas prices
Report Post »Robert999
Posted on March 12, 2012 at 8:10pmThe answer is simple: Vote for Newt. He has promised that if elected to the White House he will get gas prices down to $2.50. That’s good enough for me. NEWT 2012.
Report Post »Rebltea
Posted on March 12, 2012 at 7:01pmI for one don’t want to hear anyone who voted for this madman complain about the price of anything,gas,food or commodities. On the other hand those of us who did not vote for him have a right to rub it in anytime we hear a complaint from a *******. Obammy is just bad news all the way around and no fool, he knows exactly what he is doing…ruining the last bastion of freedom on earth.
Report Post »KidCharlemagne
Posted on March 12, 2012 at 6:39pmThe U.S. isn’t even using/purchasing all the extra gas that’s been refined here already:
—————————–
“NEW YORK, Feb 23 (Reuters) – Total U.S. four-week
average demand for refined products fell to the lowest level
since April 1997, data from the U.S. Energy information
Administration showed on Thursday.
The four-week average demand for refined products like
Report Post »gasoline and distillates fell to 18.05 million barrels-per-day
(bpd), 6.7 percent lower than a year ago.”
http://www.reuters.com/article/2012/02/23/product-demand-eia-idUSL2E8DN6Z720120223
thegreatcarnac
Posted on March 12, 2012 at 4:31pmObama continues to say that we have 2% of the oil reserves but use 20% of the world’s oil. The little Kenyan is a gigantic liar. We may have 2% of the surface oil on reserve in underground tanks and caverns,…but…in the ground,….not yet pumped out,….we have as much or more oil than Saudi Arabia had in it’s hey-day. We have even more in the oceans and gulf on our shore line. Obama and his environmental nazis will not allow drilling. He is attempting to tear us down. We are facing a coup.
Report Post »Outlaw_Josey_Wales
Posted on March 12, 2012 at 6:36pmAlso, in Wyoming Utah & Colorado there is oil shale on the surface, that contains more oil than all of Saudi Arabai.
Report Post »jackact
Posted on March 12, 2012 at 4:07pmWas anyone listening in 2008 when a young, inexperienced and severely under-employed ‘community activist’ said, “If gas prices have to get to $7 a gallon, then that is what it will take to advance green energy technologies”?
Report Post »Any guilty voters out there?
youdidthis
Posted on March 12, 2012 at 4:36pmguilty votes left along time ago.
all supporting barry now are?
all who voted for him should have voting right taken away for 8 years plus.
but, what does it matter? votes are rigged, fraud. the usa is a corporation,
the dc is an illegal district.
where in the constitution does it allow for dc?
people please quit playing the game.
Report Post »we have to follow the constitution or we are all dead.
I.Gaspar
Posted on March 12, 2012 at 3:46pmObama is going to own $4.00 and $5.00 gasoline…and it will be the deciding factor in his November humiliation at the polls.
Report Post »Minonkman
Posted on March 12, 2012 at 3:26pmThe price of gas has changed the way Americans drive and eat out. What the government better watch is lost tax revenue. They are digging a bigger hole. If people do not go out or even buy a new car, the looser here will be JOBS AGAIN. No jobs no tax money to spend on welfare.
Report Post »Mark0331
Posted on March 12, 2012 at 3:47pmSpot on Minonkman…This is all part of Barrys’ plan…confusion + chaos + economic ruin = riots, martial law, suspension of elections..Barry wins!!..I sure hope not, but he and his rabble seem to be upping the ante…
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