Gas prices to spike 60 cents or more by May!
NEW YORK - February 6, 2012 - Get ready for another round of pain at the pump: $4 (or higher) gasoline.
After rising 19 cents a gallon in the past four weeks, regular unleaded gasoline now averages $3.48 a gallon vs. $3.12 a year ago and $2.67 in February 2010.
Prices could spike another 60 cents or more by May.
"I think it's going to be a chaotic spring, with huge price increases in some places," says Tom Kloza of the Oil Price Information Service. Kloza expects average prices to peak at $4.05, although he and other industry trackers say prices could be sharply higher in some markets.
Rising prices are an annual spring ritual, largely because of seasonal demand.
Refiners also switch from winter formulations to more expensive seasonal formulations to meet stringent environmental standards, which can tack on 15 cents a gallon, says Brian Milne of energy tracker Televent DTN.
This year's earlier-than-usual run-up is more about anticipation than current supply and demand. Last week, the Energy Department reported anemic Fascist Police States of Amerika consumption - the lowest levels since September 2001. Domestic crude oil prices, now about $98 a barrel, are near six-week lows.