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Why Gas Prices Are Heading Back Up
CNBCBy Sharon Epperson | CNBC – 4 hours ago
@cnbc on Twitter
Gasoline futures settled in New York at the highest price in nearly two months, surging over 20 cents in July alone.
August RBOB (New York Mercantile Exchange: RBCV1) gasoline futures gained nearly 1.5 percent and closed above $2.85 a gallon on Monday, mirroring the climb in oil prices as the U.S. dollar weakened and tensions rose in the Middle East.
Some analysts suggest the slide toward a $3.00 retail gasoline may have permanently stalled. Retail gasoline prices often follow the trend in the futures market within a week or so, analysts say.
The national average for regular self-serve gasoline is $3.40 a gallon, up 2 cents from a week ago, according to AAA.
While a few areas in the Southeast have sub-$3.00 gas, along the East and West Coasts prices are well over $3.50 a gallon.
"I don't see prices going lower. Retail demand has been picking up and supplies are low," says Addison Armstrong, director of market research at Tradition Energy.
Refineries are also processing fuel at higher rates than is the norm for this time of year. "Refinery utilization is at 92.7 percent of capacity, which is much higher than normal," Armstrong says. "Usually this time of year it's about 89.5 percent."
On average, retail gasoline prices are 10 cents lower than they were a month ago and 27 cents lower than this time last year. So there's still a bit of relief left.
But judging from the price rise in the futures market, consumers will find the respite from high gas prices may not last much longer.
-By CNBC's Sharon Epperson
Follow Sharon on Twitter: @sharon_epperson
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martin
martin • 4 hours ago
If gas prices are going up i will spend less .......Fixed amount of $ to spend get it a#$%@# You can not get me to spend or borrow more....Why? because i refuse.
Rabid Dog
Rabid Dog 3 hours ago
Doing the same thing! Good post!! Fem!!!!!!!!!!!!
Cruzer
Cruzer 2 hours 51 minutes ago
Robbery without a gun !!!!
Frank
Frank 2 hours 51 minutes ago
Gas is going up because Obama screwed up the energy market. Get rid of Obama and government meddling and gas will be $2.50 a gallon.
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Andrew
Andrew • 4 hours ago
Low gasoline prices were the only benefit of the recent spate of terrible economic news. And now our one bit of sunshine is being taken from us? Et Tu, Brute? Then die, Consumer!
Dave
Dave • 1 hour 3 minutes ago
G R E E D...plain and simple.
Mello Fello
Mello Fello • 1 hour 38 minutes ago
Oil is a synonym for liar. There is always a storm in the gulf,an angry Iranian,a weak dollar, a broken refinery or pipeline,a drop in supply, a month with an R,heating oil, halliburton,BP,exxon,Xoff etc etc. We all know gas is manipulated but we also know the banks are all bankrupt so the dollars we pay for gas arent real either so ef uguys 2.
Magron
Magron • De Witt, New York • 3 hours ago
so as a struggling economy strains to take a breath and try to recover, the speculators are RIGHT THERE to kneel on it's chest. LOL
Magron
Magron 3 hours ago
poor pwnd little fool..still following me around to say stupid stuff after my posts?
Rick T
Rick T 3 hours ago
this isn't capitalism...its bloodsucking.
Reid S
Reid S 3 hours ago
Merely here to point out your pathetic socialist ways, and complete lack of ability to discuss issues. Enjoy some meaningless attempts to bolster your nonexistent self esteem. Good day.
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A Yahoo! User • 1 hour 48 minutes ago
Because we keep buying it.
Lea
Lea • Houston, Texas • 47 minutes ago
it's not and supply and demand, i see the lack of traffic in my city everyday. I would not be surprised if the oil companies are not lying about there run rates !
chuckster
chuckster • Surfside, California • 1 hour 30 minutes ago
Just a thought!!!! the news said two(2) pigeons were spotted flying over iran and the iran aircraft shot them down. means war, oil price's "must" go up!!! because we "may" be short of supply, maybe, something, or anything!!
Too funny how this is a sad story with all the crude, natural gas, coal ,wind ,sun, we have and act like 4 year olds at a birthday party after eating cake, ice cream, etc.!!!!!!!
RVoy
RVoy • Dallas, Texas • 3 hours ago
They go up because the Wall Street Banksters control the commodity markets (thanks to the taxpayer bailout) and they can do whatever the hell they want. The government agencies who are supposed to rein in price gouging and collusion turn a blind eye. That's why prices will go back up. Absolute greed.
Ken
Ken • Phoenix, Arizona • 41 minutes ago
WHY? because you are douche bags that hate us and don't care how much the public suffers...
Robert Johnson
Robert Johnson • 1 hour 8 minutes ago
Gas prices are up because of reduced refining capacity, and the fact that The Powers That Be need to generate as much inflation as possible to counteract the deflationary effects of fiat currency debasement. Bottom line is that the elite need to delay the coming revolution just a little while longer as they make final preparation for The Event.
tex
tex • 1 hour 20 minutes ago
I'm thinking about building a vehicle that will run on coal.
Orin
Orin • 2 hours 9 minutes ago
Because people re gambling with oil
LT
LT • 4 minutes 56 seconds ago
Please go up. Obama is doomed if it goes up. I am willing to pay $10/gal to see him out.
Lea
Lea • Houston, Texas • 46 minutes ago
Thanks Kay Bailey and your band of merry misfits !
Bizzy Cloud
Bizzy Cloud • Pompano Beach, Florida • 2 hours 35 minutes ago
Now Iran will have more money to make nukes and warheads!
JOE
JOE • Riverton, Utah • 4 minutes 26 seconds ago
Why did prices go up???? GREED!!!!
Danp
Danp • Memphis, Tennessee • 13 minutes ago
Opec has us by the short curlies. Nat gas HR1380. We could cut them back to almost 0. What are you waiting for. You get jobs, taxes, royalties, and spending in the community.
x3m
x3m • 19 minutes ago
Asking why? Because the ones who s running this so called "free market" circus finished taking the profits on the downward trend and now can put the stolen money in and run the upward cycle. Who told that capitalism doesn't work? For some... And the rest of you back to building the american dream and play in to two party democracy game.
kookscankill
kookscankill • 19 minutes ago
I have been driving a Prius for a few years now and wont be getting rid of it as nothing ever goes wrong and only take it in twice a yr for maintanance. One of the best investments ever.
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