Crude oil price surges, pump price may follow
The national average price of gasoline Wednesday, $3.52 per gallon, is 11 cents less than it was a month ago, but the gap is closing quickly as prices in recent days begun moving higher. Most notably, the Midwest and Great Lakes region have seen the steepest increases with many of those states recording 10-cent increases (or more) in just the last week.
"With NYMEX crude oil over $105 per barrel today and with concerns about who's running the government in Egypt and the security of the Suez Canal, it's not surprising that we're seeing wholesale and retail gasoline prices rise," said Patrick DeHaan, senior petroleum analyst with GasBuddy. The key question is: 'How long will the run-up in crude oil last?'
"What's even more troubling is that the Department of Energy's weekly report today showed the second consecutive week with exceptional declines in crude oil (9.9 million barrels this week) inventory totaling a 20 million barrel decline in the past two weeks," he added. "So there's no getting around the fact that prices go up when supply diminishes."
"The future looks dim again for motorists as oil prices have risen $10 per barrel in just the last two weeks. It's all but guaranteed to mean another round of price increases as motorists hit the road for summer vacations, taking a bigger bite out of their wallets," added Gregg Laskoski, senior petroleum analyst with GasBuddy.