Rose Rougeau
Rose Rougeau
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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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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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We've heard of increases in Texas as high as 50 cents a gallon overnight following Hurricane Katrina.
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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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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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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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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.
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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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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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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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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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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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What I'm hearing is that more and more we are topping the $3 a gallon mark in Texas.
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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.