Gasoline prices are going to increase
U.S gasoline prices gained less than one cent to about $1.88 a gallon over the past two weeks, Trilby Lundberg said, citing a survey of about 8,000 filling stations by her Camarillo, California-based market research firm. ``This slight rise is very unlikely to be followed by important price rises at the pump unless there's a supply shortage of crude oil,'' Lundberg said. ``Crude oil prices in recent days lost more than $3, so it's likely that gasoline prices will be slipping over the next several days.'' Crude oil for October delivery fell 7.6 percent last week to $43.18 a barrel on the New York Mercantile Exchange, as a truce with fighters in southern Iraq, brokered by the country's top Shiite cleric, Ali al-Sistani, eased concern about disruption to oil exports. Benchmark oil futures reached $49.40 a barrel on Aug. 20, highest since the New York trading began in 1983. The average retail price of self-serve regular has lost about 20 cents a gallon since late May when it reached a record on concern that refineries wouldn't be able to make enough fuel for the peak summer driving season. U.S. gasoline prices mostly fell as crude oil rallied the past two months, reports Bloomberg. According to Boston Herald, oil industry analyst Trilby Lundberg says the national average price for a gallon of regular gasoline was one dollar, 88 cents -- up just a-half cent in the past two weeks. Lundberg says the uptick was due to the rising cost of crude oil. But she notes that oil prices have dipped recently, and she expects the same will be true for gasoline. Gasoline prices have been very volatile this summer. They peaked in May, but since then have fallen more than 20 cents a gallon. Lundberg says barring any oil shortages, she expects to see gas prices drop as we move into autumn. Gas prices nudged upward about half a penny in the last two weeks after dropping more than 20 cents since May 21, but another price spike is not expected due to a decline in crude oil prices, an industry analyst said Sunday. The combined national average for all grades of gasoline was $1.91, said Trilby Lundberg, who publishes the semimonthly Lundberg Survey. The price was up from $1.90 on Aug. 13. The survey, taken Friday, polls about 7,000 gas stations across the United States. Lundberg said the slight upsurge came from an increase in crude oil, which peaked Aug. 19 at $48.70 before falling to $43.18. Self-serve regular, the biggest seller, was $1.88. Mid-grade national average was $1.97 and the U.S. average of premium was $2.07. "Crude oil's price cut will be working its way to the pump," Lundberg said, adding that unless there were an actual loss of crude oil supply, pump prices will "be sliding down into Labor Day and beyond." Lundberg attributed the slip in crude oil prices to world oil supply catching up with world demand. The spike in crude oil came when world demand showed higher numbers than expected at the same time as OPEC cut production. She said OPEC has since increased production to take advantage of higher prices. As a result, "world demand has now been more than satisfied by the supply, and crude oil prices are now headed down," she said. Lundberg attributed a spike in gas prices earlier this year to new environmental protection regulation and maintenance at refineries, informs KTVU.
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