Sandy Shore - You may pay more than ever for a late-summer drive.
U.S.
drivers paid an average of $3.72 per gallon on Monday. That's the
highest price ever on this date, according to auto club AAA, a shade
above the $3.717 average on Aug. 20, 2008. A year ago, the average was
$3.578.
More daily records are likely over the
next few weeks. The national average could increase to $3.75 per gallon
by Labor Day, said Tom Kloza, chief oil analyst at Oil Price
Information Service. By comparison, gas prices stayed below $3.70 in
late August and early September in both 2008 and 2011.
Kloza
and other analysts expect prices to start dropping after Labor Day, so
drivers shouldn't have to worry about a return to the April high of
$3.94 per gallon, barring a hurricane or other unforeseen event.
Retail
gasoline prices have risen nearly 12 percent since July 1. because of
higher oil prices, and problems with refineries and pipelines that
created temporary supply shortages in some regions. An increase in the
price of ethanol, which is blended into gasoline, also contributed to
the rise in pump prices.
Higher gas prices
aren't what the sluggish economy needs, since any extra money that goes
to fill gas tanks doesn't get spent at movie theaters or restaurants.
The
pace of the increases has slowed considerably, however. Gas rose 19
cents in the two weeks ended Wednesday. It's up just 1 penny in the five
days since. Gas costs about 26 cents more than a month ago and 14 cents
more than a year ago, according to AAA, OPIS and Wright Express.
Across
the U.S., prices range from a low of $3.43 per gallon in South Carolina
to $4.32 in Hawaii. Arizona, Mississippi and New Mexico also have
average prices below $3.50 per gallon, while California and Illinois are
up above the $4 mark.
A few drivers are
catching a break. Kloza said gas prices are lower than this date in 2011
in four states - Montana, Wyoming, Utah and Idaho.
The
price at the pump in the U.S. fell more than 60 cents per gallon during
the spring as the global economy slowed and turmoil in the Middle East
seemed to subside.
But crude oil has risen
above $95 a barrel from a low of $78 in late June. Investors have
worried about disruption to oil supplies in the Middle East and North
Sea. In the U.S., there were problems with refineries and pipelines in
the West Coast and Midwest, including a fire in California. Seasonal
factors are also at play: Summer blends of gas cost more and demand goes
up as families go on vacation.
Gas hit an
all-time high of $4.11 per gallon in July 2008. But a plunge in oil
prices knocked it down to $3.69 by the end of August. Though the
national average jumped back to $3.85 in mid-September when Hurricane
Ike hit the Gulf Coast, it plummeted to $1.62 per gallon by year-end as
the global recession took hold.
On Monday, oil
fell in New York trading after four days of gains on more concerns
about Europe's economy. European leaders are beginning a series of
discussions that could determine Greece's future and the stability of
the 17 countries that use the euro.
Benchmark
oil dropped 36 cents to $95.65 per barrel in New York. Brent crude,
which is used to price international varieties of oil, dropped 10 cents
to $113.63 per barrel in London.
Other futures prices on the New York Mercantile Exchange:
- Heating oil increased was flat at $3.09 per gallon.
- Wholesale gasoline rose 1 cent to $3.04 per gallon.
- Natural gas rose 5 cents to $2.77 per 1,000 cubic feet.
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