Gasoline prices rise in California, U.S. -- but there’s good news
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Retail gasoline prices jumped by more than a dime a gallon in California and nationwide over the last week largely because of higher oil prices.
But analysts had some reassuring words: Gas prices should be nearing their peak for the year, and a repeat of 2008’s record run-up isn’t anticipated.
‘It would take a geopolitical disaster, an earthquake or major hurricane damage to drive prices much higher than they are now,’ said Tom Kloza, chief oil analyst for the Oil Price Information Service in New Jersey.
That’s in spite of the fact that crude oil had another strong finish today. Light sweet crude for July delivery ended the trading day up 78 cents at $62.45 a barrel. Analysts described it as a roller-coaster ride in which the primary influence early in the day switched from missile tests in North Korea to a strong showing by the stock market and some unexpected strong numbers on growing consumer confidence.
Pump prices also climbed to new highs for 2009. The price of an average gallon of regular gasoline rose by 11.3 cents in California to $2.637 as of Monday, the Energy Department said today. The figures were released a day later than usual because of the Memorial Day holiday. The government’s weekly survey of filling stations also showed that the national average had climbed 12.6 cents to $2.435 a gallon, led by a jump of 16.9 cents in the Midwest.
Still, it’s much lower than last year. By this week in 2008, gasoline was selling for an average of $4.099 a gallon in California and $3.937 nationally.
-- Ron White