A drop in NJ gas prices could start in days
It’s become the new reality in New Jersey: Gas prices keep climbing higher and higher to new records almost every single day. But we could soon get a break.
According to Tom Kloza, the global head of energy analysis for the Oil Price Information Service, we could be getting a respite from rising gas prices in the coming days.
He said over the next three months, “the trend is still higher but I think the next three weeks we might wobble back a little bit. You may see a nickel, 10 cents lower.”
He said the wholesale price of gasoline has been dropping since Monday, which is a good sign.
Dance your gasoline troubles away
“What we’re seeing this week is we’re seeing crude (oil) kind of do the cha-cha but gasoline prices are kind of doing the tango with deep dips," Kloza said.
“I do think we’re getting a reprieve now, and it will be a noticeable reprieve, you know pending any other news.”
He said right now prices at the pump are hovering around $5 and “you might be at $5 tomorrow, but based on these sort of respites in the spot market, you might see prices drop below that.”
What happens after that?
A month from now, Kloza expects prices at the pump to start drifting higher.
“July is really going to be driven by demand and there’s an awful lot of people that are saying I don’t care what the price is, I’m taking my vacation,” he said.
Looking a bit further down the road, Kloza pointed out that August is hurricane season.
"We cannot afford to lose one refinery for precautionary shutdown, let alone one that actually gets damaged," he said. “To lose a big refinery in Port Author or Houston or New Orleans or whatever, would really send prices soaring.”
How do NJ gas prices compare to other places?
Kloza noted while $5 a gallon gas is certainly upsetting, drivers in California are paying around $6.50 a gallon because the Golden State has such a high gas tax, while drivers in Canada pay about $7 a gallon, and some countries in Europe have gasoline priced at $10 a gallon.