Dear Old Friend, Greetings from somewhere over France. While I’m always game for financial adventure, I’m prone to technological mishap. Those Apple Store classes where they teach spry grandparents how to operate their smartphones? Those were likely designed for me… but I’m too stubborn to read an instruction manual or listen to a member of […]XLE
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Postcards: These Four Stocks Are Showing Real Momentum
Dear Old Friend, Greetings from somewhere over France. While I’m always game for financial adventure, I’m prone to technological mishap. Those Apple Store classes where they teach spry grandparents how to operate their smartphones? Those were likely designed for me… but I’m too stubborn to read an instruction manual or listen to a member of […]Gas Prices Spike: Ease the Pain of $5.00 Gas with UGA, USO, COP, XLE
February is typically a month when gas prices recede - but not this year.
Average gas prices currently are about $3.69 according to AAA's Daily Fuel Gauge Report. That's higher than the average for the whole of 2011, which was the priciest year ever for gasoline.
The average price for U.S. gas has climbed more than 10% in just the past two months. This suggests a trajectory that could produce a spike of 60 cents a gallon or more by May.
"I actually believe that prices will be moving higher than 60 cents a gallon on average," Money Morning energy expert Dr. Kent Moors recently told Executive Editor William Patalon III. "By mid-summer, in fact, we could see $5 a gallon being reached in certain regions of the U.S. market."
Here's why we could be facing the most painful year at the pump - and how you can offset record-breaking gasoline costs.
In fact, according to Tom Kloza, chief oil analyst for the Oil Price Information Service (OPIS), demand for oil is at its lowest point since April 1997.
Instead, there are a new set of factors pushing U.S. gas prices higher, including:
Average gas prices currently are about $3.69 according to AAA's Daily Fuel Gauge Report. That's higher than the average for the whole of 2011, which was the priciest year ever for gasoline.
The average price for U.S. gas has climbed more than 10% in just the past two months. This suggests a trajectory that could produce a spike of 60 cents a gallon or more by May.
"I actually believe that prices will be moving higher than 60 cents a gallon on average," Money Morning energy expert Dr. Kent Moors recently told Executive Editor William Patalon III. "By mid-summer, in fact, we could see $5 a gallon being reached in certain regions of the U.S. market."
Here's why we could be facing the most painful year at the pump - and how you can offset record-breaking gasoline costs.
What's Driving U.S. Gas Prices to $5 a Gallon
Usually, higher gas prices result from low supply and high demand, but that's not the case this year. Even with consumption growing in emerging markets like China and India, the current surge in gas prices isn't based on increased demand for crude oil.In fact, according to Tom Kloza, chief oil analyst for the Oil Price Information Service (OPIS), demand for oil is at its lowest point since April 1997.
Instead, there are a new set of factors pushing U.S. gas prices higher, including:
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