Gas Prices Rise At The Pump Again [AUDIO]
Gas prices are up again about 20-cents-a-gallon in Jersey in a month. So where are we headed?
Tom Kloza of the Oil Price Information Service says renewed confidence in the world economy has prompted investors to put some of their money back into crude oil, driving up gasoline to an average of about$3.40 a-gallon right now. He says we are seeing prices move higher mostly because there is expectations that maybe the world economy isn't going to fall off a cliff.
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Kloza says, "It is certainly not demand-related in the United States because demand for gasoline is probably off by about 4 percent or so from last year."
He believes we may go above $3.50, but after Labor Day, we are likely to see prices about as low as they have been in the last ten months or so.
Kloza says, "It's really because prices always drop, or almost always drop, between Labor Day and the middle of November."
He still describes the price rise as,'tentative',
"I don't think there's necessarily real active faith there."
And there's some fear that once September comes, a couple of things could happen: "Number one, we are going to get these "days of reckoning", let's say for European sovereigns.
Number two, We are going to see lower gas demand and we are going to see more ability to make gasoline.
But he also cautions more European economic trouble or hurricanes that close refineries could throw the whole, "lower prices in the Fall", schedule out of whack.
According to Kloza, "it's not very exciting. It's kind of like watching one of those Olympic Badminton matches right now."