Oil hits a high; some in U.S. see $4 gas by spring
Gasoline prices, which for months lagged the big run-up in the price of oil, are suddenly rising quickly, with some experts fearing they could hit $4 a gallon by spring. Diesel is hitting new records daily and oil closed at an all-time high on Tuesday of $100.88 a barrel.
...As oil prices spiked last fall, low wintertime gasoline demand helped keep prices in check. But now, experts say, the price of oil is finally showing up at the pump.
..."We've gone this high without the normal summer dynamics," said Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service. "That's when I think we will have the big jump — of 50 cents to 75 cents a gallon."
Kloza said he expects gasoline to peak around $3.50 to $3.75 a gallon nationwide. Geoff Sundstrom, AAA's spokesman, echoed that view and added that $4-a-gallon gasoline is possible this summer. "We've gone from a worrying situation for gasoline to one that is quite alarming," Sundstrom said.
...While demand keeps growing, producers are struggling to catch up. They are not replacing the oil they are pumping out of the ground fast enough because of various restrictions on access to fields, as well as rising costs. Meanwhile, demand from China, India and the Middle East is expected to push oil consumption up by more than 1 million barrels a day, each year, for the next decade.
"An oil crisis is coming in the next 10 years," John Hess, the chairman of Hess Corporation, said at a recent conference in Houston hosted by Cambridge Energy Research Associates. "It's not a matter of demand. It's not a matter of supplies. It's both."
###Russel Casse: Good God! I’ve been sayin’ it. I’ve been sayin’ it for ten damn years. Ain’t I been sayin’ it, Miguel? Yeah, I’ve been sayin’ it.
movieactors.com
No comments:
Post a Comment