Gasoline prices, along with related exchange traded funds (ETFs), have been steadily increasing on the back of crude oil prices. Still, gasoline prices have been somewhat suppressed as winter storms continues to rage.
Speculative money have pushed crude energy prices up, and pump prices have reached a 15-month high, with the average gallon of gas at around $2.71, reports Mark Williams for ABC News. Americans are spending around $1 billion a day on gasoline, and in some areas, people are paying a dollar more per gallon they were a year a go. [Gas ETF: unjustly overlooked?]
Refiners are paying high prices for crude oil, but the low demand for fuel has made refiners produce gas at a loss. The large snow storms have forced drivers home and away from consuming gasoline. Refineries are operating at 79.9% capacity, well below historical averages.
According to AAA, Wright Express and Oil Price Information Service, gasoline prices have risen 7 cents in just the last week. Energy experts believe that people will find $3 gas prices to be the new norm by spring once refiners switch to less polluting blends of gas as required by law.
Back in 2008, gasoline prices peaked at $4.11 a gallon in July, and after crude oil prices plummeted, gasoline prices were at an average $1.618 a gallon on New Year’s Day 2009, according to USA Today. Geoff Sundstrom of AAA believes the gasoline prices will be heavily dependent on the fiscal health of the country and demand won’t be close to levels two or three years past.
For more information on gasoline, visit our gasoline category.
- United States Gasoline (NYSEArca: UGA): up 6.4% in the last month
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.