Gasoline at Highest Price Ever for This Time of Year

TXgolfer

TXgolfer

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Gasoline Prices $4/Gallon By Valentine's Day?
Stocks, oil and gasoline prices rose to new milestones to close out the week. The Dow hit the 14,000 for the first time since 2007, Brent crude futures are at a 4-month high, and gas prices at the pump on average are at the highest price on record for this time of year. CNBC's Sharon Epperson looks ahead to how far gas prices could climb over the next few weeks.
U.S. drivers are now paying more to fill up their gas tanks than they ever have at this time of year.

The national average price of retail gasoline posted its biggest one-day increase in 23 months on Friday, rising four cents to $3.46 a gallon, according to AAA. The average price has risen 13 cents -- a 4 percent increase -- in the past week.

Gasoline prices have followed in part the climb in the stock and oil prices. Oil and equities have risen sharply over the last few weeks, as the Dow Jones Industrial Average reached 14,000 for the first time since 2007, Brent crude oil futures hit at 4-month high near $117 a barrel, while the U.S. oil price is near $98 a barrel.

Retail gasoline prices have also hit a new milestone.

"This is the highest price record for February 1st," says OPIS analyst Tom Kloza, who predicts the national average price of regular gasoline will climb a few more pennies to $3.50 a gallon this weekend.

NYMEX March RBOB gasoline futures, which help determine prices at the pump, have risen 10 percent in the past two weeks, finishing the week at $3.05 a gallon on

Oil producer Hess announced earlier this week that it is shutting its refinery in Port Reading, N.J., by the end of February. That refinery accounts for about 7.5 percent of oil production on the East Coast at about 70,000 barrels per day. Philadelphia Energy Solutions isalso set to begin planned maintenance at its 335,000 barrel per day Philadelphia refinery

Traders and analysts forecast the closure and maintenance of refineries near the New York Harbor will further tighten gasoline supplies in the region. Planned maintenance in other parts of the country also add to concerns about gasoline supplies.

Meanwhile. gasoline demand is on the rise. While total U.S. gasoline supplies fell by 1 million barrels last week, gasoline demand increased by 70,000 barrels a day tothe highest level since the end of December.

Analysts say the U.S. Labor Department's upward revision to payroll data on Friday is further indication of steady economic growth and will lead to continued increases in gasoline demand. The number of non-farm jobs added in November was revised sharply higher from 161,000 to 247,000, while the figure for December was upgraded from 155,000 to 196,000.

"Significant upward revisions for 2012 and last two months of the year in particular are showing up in the increase in gasoline demand," says John Kilduff, founder of Again Capital. "Improvement in employment is going to be supportive of gas prices."


—By CNBC's Sharon Epperson; Follow her on Twitter: @sharon_epperson

Disclaimer
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Gasoline at Highest Price Ever for This Time of Year
 
Oh yeah....got gas yesterday @ $3.65/gallon...made me sick...I also saw some stations selling at $3.75/gallon.....so again, I won't be doing much driving.....
 
It isn't new for me because gas price usually go up, down, up, down, up, down for some of time.
 
With the new refineries coming into production this should start declining in the years to come.
 
VacationGuy234 said:
With the new refineries coming into production this should start declining in the years to come.
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That's explains and the employment growth pushed the gas to higher - more demand and limited supply.

High gas price isn't new to me, though.
 
VacationGuy234 said:
With the new refineries coming into production this should start declining in the years to come.
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Keyword "Should" Reality "will not"

Regardless, in the meantime this is another painful burden for the working poor. (Although there are some silver linings to this. :) )
 
Foxrac said:
That's explains and the employment growth pushed the gas to higher - more demand and limited supply.

High gas price isn't new to me, though.
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This price, at this time of year, is new to everyone in the U.S. ......Hence "record"
 
Foxrac said:
That's explains and the employment growth pushed the gas to higher - more demand and limited supply.

High gas price isn't new to me, though.
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That employment growth and higher demand occurred in China. Don't bother trying to educate the OP on that subject. He feels that everyone deserves whatever economic plight they live under, because they chose it.
 
Gas is rising at a rate of $.03 per day here right now.
 
Another reason is they are switching to summer blend gasoline and storing the winter blend.
 
saywhatkid said:
That employment growth and higher demand occurred in China. Don't bother trying to educate the OP on that subject. He feels that everyone deserves whatever economic plight they live under, because they chose it.
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Yes, I agreed.

I usually ignore to OP's reply and not interested to feed the troll.

We had gas price increase on record and having a record isn't new to me because any record will happen in anytime, also in some area, I paid higher gas price than average. In year ago, I thought gas price will hit $4 in here but turned to not true, so it was highest as $3.80 in my area.
 
Calvin said:
Another reason is they are switching to summer blend gasoline and storing the winter blend.
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Right, that's what I saw is the reason for CA's changing gas prices lately. One of the Chevron refineries here are temporarily down while they change the blend.
 
Yeah it's more common these days.

naisho said:
Right, that's what I saw is the reason for CA's changing gas prices lately. One of the Chevron refineries here are temporarily down while they change the blend.
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naisho said:
Right, that's what I saw is the reason for CA's changing gas prices lately. One of the Chevron refineries here are temporarily down while they change the blend.
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Is it good idea to build more oil refineries to meet population's growth? For me, it isn't bad idea for sure.
 
TXgolfer said:
My friend in Burlingame said he saw a station over $5.... SMH.
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When I drove back home from Tx on the road, LA was close to $5, upon coming home it was $4.40's. South Ca is more higher than North.
 
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