Rose Rougeau
Rose Rougeau
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Conditions indicate that motorists may see slight increases in retail gasoline prices within the next few days. Typically, pump prices in Texas move lower during this time of year due to a decrease in demand, but with crude oil trading around $63 a barrel that has yet to happen.
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That is far more than we would expect given their rate of licensure.
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Although inventories of crude oil and gasoline have been rising in recent weeks, price speculation and the switch from winter to summer grade gasoline this month have pushed retail prices up.
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Higher gas prices will not deter Texans from traveling this holiday. Nearly 5.1 million Texans are expected to travel for the Christmas - New Year's holiday, up 1.4 percent from last year. When you factor in hotel and rental car rates, gasoline remains a relatively small part of most family travel budgets.
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With surveys showing American teens trailing their international counterparts in geographic literacy, it's great to see students like Francis excelling in travel and geographic competitions. Francis will compete with some of the nation's brightest students during the national finals in Orlando.
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Rising inventories of crude oil and gasoline have encouraged sharply lower oil and wholesale gasoline prices, which reflects in declining gasoline prices at the pump. Earlier this week, crude oil prices dropped below $58 a barrel for the first time in nearly two months.
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We may see prices even higher because of the hurricane. I don't think we've seen the end of record crude prices.
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Retail gasoline prices have moved higher against a backdrop of increased crude oil prices. A year ago, crude oil traded at $49 a barrel and gas prices averaged $1.792--49 cents lower than the current average of $2.283. This week, crude hovers around $66 a barrel.
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Retail gasoline prices have gone up 15 cents in the past two weeks. The increases can be traced to investor speculation leading to higher prices for both crude and wholesale gasoline. With crude trading around $64 a barrel, it doesn't appear likely gasoline will fall below $2 a gallon anytime soon.
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What I'm hearing is that more and more we are topping the $3 a gallon mark in Texas.
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We're advising motorists not to top-off their tanks. With the price of gasoline escalating, motorists can conserve gas by making sure their vehicle is routinely maintained, consolidating trips, car pooling, using mass transit and for short trips try bicycling or walking.
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The AAA believes that people should be able to keep driving as long as they want to -- if they can do so safely. We need to move past the myth that an older driver is automatically an unsafe driver; it's not true.
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For the past month, gasoline prices have fallen as inventories of gas and crude oil continued to show a healthy surplus compared to last year. Motorists can expect to see relative price stability for the next couple of weeks.
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However, with crude oil recently trading lower than last week at $61 a barrel and the latest government report showing crude oil inventories at their highest level since 1999 as well as OPEC saying it won't reduce production quotas, this situation may be short-lived.