Little demand may force gas prices down
Published: Monday, June 1, 2009 at 8:22 a.m.
Last Modified: Monday, June 1, 2009 at 8:22 a.m.
Gas prices continued rising over the past week, but analysts are predicting they will start declining again soon because there is no demand driving the price up.
Average regular unleaded gas prices in Florida
Current – $2.477
Week Ago – $2.417
Month Ago – $2.084
Year Ago – $3.964
Source: AAA Auto Club South
“History is on the side of a price decline,” according to Retail Fuel Watch, an oil industry trade publication.
Crude oil prices would need to reach $100 a barrel in order for gas prices to climb back to $3 a gallon, and the highest wholesale projections for 2009 are $75, said Tom Kloza, the publisher and chief oil analyst of the Oil Price Information Service.
“All rallies come to an end,” said Gregg Laskoski, managing director of public relations, AAA Auto Club South. He said the recent increases in prices as the pumps are the result of refinery reductions and crude and wholesale price increases, but not consumer demand.
In his weekly news release, Laskoski said, that on May 1 the average price per gallon was 45 cents lower than it is now.
"Even the most bullish of analysts would have to expect the rate of (retail gasoline) price increases to slow down in coming weeks,” Laskoski said.
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