Entries in Oil Prices (63)


Tropical Storm Isaac Could Hike Up Gas Prices

Jupiterimages/Thinkstock(NEW YORK) -- The giant storm now moving over the Gulf of Mexico could have a direct impact on consumers' wallets -- pushing up the price of gas.

Energy companies are scrambling ahead of Tropical Storm Isaac, evacuating workers from many oil and natural gas platforms, and cutting oil production in the Gulf of Mexico.

As the storm tracks west, it becomes a bigger threat to the energy industry.  The Gulf accounts for more than 20 percent of U.S. oil production and more than 40 percent of refining.  If many plants are closed, it could push up gas prices -- at least for a few weeks.

Global oil prices, meanwhile, are on the rise.  West Texas crude has risen to more than $97 per barrel.  The price was in the low 80s as recently as June.

Copyright 2012 ABC News Radio


Gas Prices Rise for the First Time in Months

Jupiterimages/Thinkstock(NEW YORK) -- Good news for the European economy means bad news for U.S. motorists.  Gas prices went up an average of two cents on Friday and another two cents on Saturday to bring the average price of a gallon up to $3.38.  

Before this weekend, U.S. motorists had enjoyed 75 days of falling gas prices.

News that Europe is getting a handle on its debt crisis means its economy could soon rebound, and a robust economy means increased oil consumption by industries and individuals.  That pushes the price of crude higher worldwide, and drivers end up paying more at the pump.

As for the road ahead for U.S. motorists, experts believe gas price increases will slow or stop when the summer driving season comes to an end, and then will either go up or down, depending on economic news.

Copyright 2012 ABC News Radio


Gas Prices Down 10 Cents from Last Week

Comstock Images/Thinkstock(WASHINGTON) -- The average price of a gallon of regular gas is $3.44, down nearly 10 cents from a week ago, according to the Department of Energy.  This price is also down nearly 14 cents from a year ago.

The most expensive gas in the country is on the West Coast, where the average price for a gallon of regular is $3.82, down 14 cents from a week ago.

The least expensive gas is on the Gulf Coast, with the average price for a gallon of regular at $3.20, down 7 cents from a week ago.

We will likely see even lower gas prices in coming weeks as the price of oil continues to fall.  Oil closed at $79.21 per barrel in New York trading today, down 55 cents for the day.  Oil is trading at levels last seen in the fall of 2011.

Copyright 2012 ABC News Radio


Crude Oil Prices Keep Dropping and Gas Prices Along with Them

Comstock Images/Thinkstock(NEW YORK) -- Gasoline prices are dropping like a stone because of a glut of oil supplies that pushed the price of crude to under $80 a barrel Thursday -- the lowest it's been in eight months.

Currently, the average cost of a gallon of unleaded regular is $3.47 across the country and if Americans are driving less, they can expect to see prices at the pump come crashing down further as the summer wears on.

Some very optimistic analysts have speculated that gas prices might not only fall under $3 a gallon nationally, but could go as low as $2.50 in some areas of the U.S.

This is a far cry from early April when prices were hovering around the $4 a gallon mark, with fears growing that $5 a gallon were possible by this time of the year.

Copyright 2012 ABC News Radio


Oil Producers in for a 'Crude' Awakening

Comstock Images/Thinkstock(NEW YORK) -- Oil prices keep coming down.  Since the start of the month, the price of crude oil has dropped daily, falling to $96 a barrel Tuesday.

Analysts say it has to do with fears that the global economy is weakening, while the Saudis have boosted production.

That's the bad news.

The good news, at least for American consumers, is that the price of gasoline has dropped more than 17 cents since April 1, hitting $3.76 per gallon on average nationally Tuesday.  That's about 20 cents less than it was this time last year.

Meanwhile, the government is backing off predictions that gas will reach $4 a gallon by the summer and the Energy Department's Energy Information Administration says that gas prices could actually fall further from now through September, although $3 a gallon is probably unrealistic.

Copyright 2012 ABC News Radio


Double-Digit Jump in Gas Prices to Come?

Jupiterimages/Thinkstock(WASHINGTON) -- The pain at the pump for American drivers continues.

The Department of Energy is likely to announce on Monday that over the past week gas prices have climbed by about 12 cents a gallon.  This latest increase would push the nationwide average closer towards $4 a gallon and comes well ahead of the peak driving season -- beginning in mid-May -- when prices are expected to go even higher.

This month alone, the cost of crude oil has jumped from $96 to $109 a barrel.

President Obama has been facing pressure from some Democrats to consider releases from the Strategic Petroleum Reserve.  However, energy analysts say that while this move might bring down gas prices for several weeks, it will have little impact on what happens during the summer and fall.

Copyright 2012 ABC News Radio


Gas Prices Rising and Only Expected to Go Higher

Stockbyte/Thinkstock(NEW YORK) -- Prices at the pump were at or below $1 in late 1998, early 1999.  Now, 13 years later, Americans are paying about four times that amount and it's bound to go a lot higher by the time the peak driving season starts in mid-May.

Currently, gasoline is averaging $3.56 nationwide -- 40 cents more than at the same time last year.

The reasons for the price hike: trouble with Iran, greater international demand, switching over to more expensive grades for the spring and the People’s Bank of China reducing its banks’ reserve requirements that sent the cost of crude up to $105 a barrel, the most it's been in a year.

President Obama says the increase also has to do with the economy improving.  Be that as it may, rising prices will likely be pinned on the White House, not the Republicans who are blaming Obama’s refusal to build the Keystone Pipeline as a big reason why the U.S. is still dependent on foreign energy sources.

video platform video management video solutions video player

Copyright 2012 ABC News Radio


Gas Prices Continue to Rise

Comstock Images/Thinkstock(WASHINGTON) -- Gas prices are continuing to move upward with a gallon of regular at $3.38, up 8 cents from a week ago, the Energy Department’s U.S. Energy Information Administration said Monday.

The weekly national average increased almost 30 cents from a year ago and rose for the third consecutive week, adding to predictions that 2012 might be an uncomfortably expensive year for drivers across the country.

Last year was a record year for gas prices, but 2012 is forecasted to surpass its annual average. The real annual average for a gallon of regular gas last year hit $3.56, up from $2.90 in 2010, according to the EIA. From its data that begins in 1919, the previous record high was in 1981, at $3.45.

Patrick DeHaan, GasBuddy’s senior petroleum analyst, forecasts that by Memorial Day, the national average will range between $3.86 and $4.13 per gallon. He also predicts that prices in 2012 will come close to or set new all-time highs. If prices soar this year, drivers could spend $200 to $300 more for gas in 2012.

At the end of the day, light, sweet crude for February delivery settled at $101.31 a barrel on the New York Mercantile Exchange, down 25 cents, or 0.3 percent, The Wall Street Journal reported.

Copyright 2012 ABC News Radio


Analyst: 2012 Could Be the Worst Year Yet for Gas Prices

Jupiterimages/Thinkstock(NEW YORK) -- To the dismay of drivers across the country, 2011 went down in the record books as having the most expensive gasoline average ever -- $3.513 for the year, 72 cents per gallon higher than 2010′s yearly average, according to GasBuddy.

Patrick DeHaan, GasBuddy’s senior petroleum analyst, projects that by Memorial Day, the national average will be between $3.86 to $4.13 per gallon, and that prices in 2012 will come close to or set new all-time highs. If that happens, drivers could spend $200 to $300 more for gas this year.

Inflation adjusted data from the Energy Department’s U.S. Energy Information Administration (EIA) confirmed that 2011 was a record year.  The real annual average for a gallon of regular gas last year hit $3.56, up from $2.90 in 2010, according to the EIA. From its data that begins in 1919, the previous record high was in 1981, at $3.45.

Of course, in 2008 gasoline prices had the longest stretch of $4 or more, but the yearly average was $3.24, according to GasBuddy’s data, which goes back to 2000. In 2008, gas prices slid from October to December 2008 to less than $2 a gallon nationally.

Over the past seven years, according to GasBuddy data, gasoline prices rise an average of 93 cents per gallon from the start of the new year to when they eventually peak the same year, DeHaan said.

“Typically, prices peak in the summer months, or around Memorial Day, as has been the case in 2010 and 2011,” he said.

An increase of 93 cents a gallon could mean average gas prices may rise more than $4 a gallon and could easily approach record highs, he said.  In 2004, gas prices had the largest price difference from the new year to their peak, when prices climbed $1.31 per gallon.

If such a gain occurred this year, that would mean the national average could rise to well over $4.25 a gallon, and some areas could see $5 a gallon.

“While that’s not very likely, it does represent a realistic worst case scenario,” he said.

DeHaan said he is traditionally reserved about forecasting oil prices, which hovered above $102 a barrel on Thursday.  But he said 2012 would almost certainly break all records, in part because of political tension with Iran over its nuclear program.

Iran has threatened to close a key oil passageway, the Strait of Hormuz, in possible retaliation for new economic sanctions from the U.S. and the European Union.  Iran holds the world’s fourth-largest proven oil reserves, and the world’s second-largest natural gas reserves, according to the EIA.

Should Iran become more hostile and cause a supply disruption, oil prices could soar to all-time highs and approach $175 to $200 a barrel, DeHaan said.

Copyright 2012 ABC News Radio


Oil Prices Rise: Good Sign for Global Economy?

Comstock Images/Thinkstock(NEW YORK) -- If oil prices are any indicator, the global economy could be making a turn for the better.

Crude oil rose to a three-month high on Friday, now hovering around $98 a barrel.  Moreover, crude is up 30 percent in a little more than a month.

The stronger demand for energy is a key economic indicator.  Investors are growing more hopeful that Europe will be able to keep its debt problems from creating an international crisis.

Copyright 2011 ABC News Radio

ABC News Radio