Rose Rougeau
Rose Rougeau
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Crude prices pushed near the all-time record high of $70.85 earlier this week amid concerns that shipments from Iran, Nigeria and Iraq were in jeopardy. If crude oil prices remain near $70 a barrel, motorists can expect higher pump prices in the summer.
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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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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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The jump in retail gas prices is partly due to the seasonal production switch from winter- to summer-grade gasoline, which usually brings higher prices as output is temporarily reduced.
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These recent decreases at the pumps are more likely to be temporary. The U.S. concerns over Iran's nuclear ambitions and violence in Nigeria have kept the price of crude above $65 a barrel -- a level not seen since the hurricanes of 2005. If crude continues to stay at this level, motorists will continue to pay high prices at the pumps.
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These documents are often marketed as a way for people to drive without obtaining a valid license, or to continue driving if their government-issued license has been suspended or revoked, or as a way to avoid driver's education.
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Crude oil prices that continued to stay below $65 a barrel this week, fueled by the warmer than normal winter weather across the U.S., have helped drive retail gasoline prices slightly lower. It remains to be seen however, if these relatively modest declines in retail gasoline prices will continue with the geo-political concerns over Iran's nuclear ambitions.
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Be vigilant about restricting your children from riding with a first-year teen driver. It's tempting to have different options for getting kids and teens to and from school, a job, sports practices and other events, but the risks are high. Parents who understand the risks should be more willing to personally drive children until teens obtain their full licenses or have gained enough driving experience to make them feel comfortable with transporting others.
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The trend may continue as strong demand combined with uncertainties about gas and ethanol supplies in the coming weeks may keep prices on their upward course.
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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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More than five million Texans are expected to travel for the Christmas-New Year's holiday, with the majority of those travelers driving to their destination. In an effort to keep the roadways safe, we encourage partygoers to act responsibly by buckling up and having a designated driver or to utilize our Tipsy Tow service.