Gas Prices Creep Up as Oil Hits $100

Gas pricesWest Texas Intermediate crude hit $100 a barrel briefly Thursday, a rise at least in part attributed to an apparent settlement for the Greece debt crisis. But despite the return of rising prices, the International Energy Agency has said it won't release more reserves, as it did in June when member nations made 60 million barrels available. Crude dropped to $90 back then, so the recent rally is an 11% increase.

Another factor in oil prices: China's manufacturing activity has slowed, as evidenced by recent PMI data.

In this country, though Labor Day weekend is not far away. Between now and then, we'll see the traditional surge in travel that envelopes August and ends with the holiday. The price of gas has begun to rise ever so slightly, and that surge may well accelerate if crude remains high.

The AAA Fuel Gauge reported that the average price of a gallon of regular reached $3.689 Thursday, up from $3.637 a month ago. Prices are highest in some of the most populated states, such as California, New York, Illinois, Connecticut, and Massachusetts. Premium prices have moved back toward $4: The national average is $3.938.

The price of gasoline usually lags the price of oil. If that pattern holds true, consumers can expect higher gas prices later this summer.

There is potential good news for gas prices, though. However, it's the silver lining in a big, ugly raincloud. The U.S. economy has slowed nearly to a halt. Consumer spending and consumer confidence have sputtered. Housing activity has remained moribund. The economy added only 18,000 non-farm jobs in June and the July number could be worse. It is a horrible analysis, but while rising oil could push gas prices higher, the economic slowdown could send them right back down again.

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capenv

bend over and oil up

July 24 2011 at 10:46 PM Report abuse rate up rate down Reply
nbijohn

A simple rule would lower oil price immediately. Right now oil has become an investment tool just like gold, silver, common stock and bonds. People are buying oil futures that will never take delivery of the oil. If we simply limited oil futures trading to companies that actually produced oil and took delivery of oil to make refined products, gasoline, heating oil, diesel etc, we would immediated lower the price of oil at least 15 %. Eliminate oil speculation by investors and limit oil purchases to refiners. Speculation is driving up oil price because the Federal Government is printing money, devaluing the dollar and the money is going into commodities like oil. Oil is too important to world growth to allow it to be used as an investment tool for speculators.

July 24 2011 at 6:56 PM Report abuse rate up rate down Reply
1 reply to nbijohn's comment
cpo1514

nutsyjohn.... ever heard of a free market??/ time to drill & open the Obamazided refineries.... The matket will determine the oil prices ... just stop oil drilling and oil will go over $100 a barrel... (right Barry) Do a #41 and start the drills and open closed refineries and oil will go down .... right Dubya?? Be a Scoialist and fund electric cars that no one wants and wen will be broke ......

July 25 2011 at 9:28 AM Report abuse +1 rate up rate down Reply
Mjames

Get rid of the oil traders an speculaters.

July 24 2011 at 6:38 PM Report abuse rate up rate down Reply
Master of my fate..

A couple of months ago Obama opened up the Fed. emergency oil reserve and flodded the market w ith oil and the price went down temperarily as expected just as his poularity poll went up temperarily. Problem is they need to replenish what they took out, creating more demand so the price goes up.
How scary it is with Obama so involved with Americas economics.

July 24 2011 at 3:49 PM Report abuse +2 rate up rate down Reply
Rocko

Sarah Palin/2012 ~ Mark Levin, Jeff Sessions, Herman Cain, Sheriff Joe or Romney as Sarah's Vice President.
Now were talking, "Drill Baby Drill" .............


Dear Republican,

They are at it again! The liberal media and the Obama spin machine are furiously laying the groundwork to blame Republicans if the government were to default on August 2nd.

The truth is Obama caved to Nancy Pelosi and his Party's ultra-left wing on Friday and they sabotaged the negotiations with GOP leaders by demanding EVEN HIGHER TAXES at the last minute of negotiations.

The Republican Party's stance is clear: We need spending cuts not new taxes.

Obama promised America a better economy when he was elected in 2008. But there is no doubt that his and the Congressional Democrats insatiable hunger for ever higher taxes, greater government growth, reckless spending and massive trillion dollar deficits have only made things worse. More job killing taxes are the last thing our economy needs.

It's no surprise that the liberal Democrats would now rather play politics than tackle the government's addiction to spending - and the liberal media will be there to support them every step of the way.

Even worse, Obama and his leftist allies will be running scare and attack ads against our most vulnerable members and we need to support them now!

Please help us fight the Obama Democrats' message machine and their liberal media allies. This is a serious debate affecting real families. We must make sure our friends and neighbors know the truth - Republicans are offering serious solutions while the Democrats default on our government obligations.

Support our Republicans who boldly stand against the Obama/Pelosi plan to raise taxes today!

July 24 2011 at 3:15 PM Report abuse +3 rate up rate down Reply
1 reply to Rocko's comment
bushsnitemare2

HMMMMM......DID YOU KNOW THAT 80% OF THE AMERICAN PEOPLE FAVOR THE RICH TO PAY MORE IN TAXES, I CAN SEE WHY. A HOLE DECADE WORTH OF BUSH TAX CUTS. WHY SHOULD WE REWARD THOSE WHO CAUSED THIS ECONOMIC COLLAPSE?........LET THE BUSH TAX CUTS EXPIRE, WE CANNOT AFFORD TO BE GIVING CORPORATE WELFARE AWAY TO CORPORATIONS WHO ARE MAKING RECORD PROFITS...

July 25 2011 at 12:33 AM Report abuse -1 rate up rate down Reply
1 reply to bushsnitemare2's comment
cpo1514

perhaps Moochelle should stop flying her friends around and all Federal employees should take an immediate and permanent 20% pay cut. Also--- use the same Obamacare that is shoved up our ... you get the point.

July 25 2011 at 9:31 AM Report abuse +2 rate up rate down
cugar65

let them eat my wallet. oil businesses are never satify their income as not emough just greedy. i know not easy what i earn is limit to pay gas cost fill up lol

July 24 2011 at 8:54 AM Report abuse rate up rate down Reply
stag01987

The headline is "Gas Prices Creep Up". Creep up? No..They move up rather fast.
They only creep down.

July 23 2011 at 7:25 PM Report abuse +6 rate up rate down Reply
1 reply to stag01987's comment
spunky900123

I agree it only creep down by a penny at a time and jumps up by 20 cents or at a time

July 24 2011 at 11:48 AM Report abuse rate up rate down Reply
dabrownman

All gasoline is actually priced by Zip Code and what the average incomes are for that zip code. Higher income areas pay more plain and simple. The only other factor that effects gasoline prices are state taxes which vary greatly. All Fed taxes on gasoline are the same everywhere but the money collected isn't used for roads for some reason. Most of it is used to build airports in congressional districts where congressmen and Senators are from. I can only figure they want to be able to fly home easily every weekend. Oddly most government revenues are not spent for anything clise to what it was raised for Social Securoity is just one of many other examples. If Americans knew oar cared about the truth they would be even more upset with congress than the 90% who already them.

July 23 2011 at 2:15 PM Report abuse rate up rate down Reply
Frank

what a crook,in pl valley n.y. where i live it is 4.05 a gallon 50 miles up the road in waterford,cohoes area its 3.54 why.why is oil more in so called popular states.the price right now should be 3.33 to 3.40 a gallon.

July 23 2011 at 9:30 AM Report abuse +1 rate up rate down Reply
cpo1514

Gee whiz... Carl Levin (Dumbaxx- MI) has not started even one CPSTLY hearing as to why the oil companies are making too much money.... must be the Organizer is in office and not a Texas businessman.... 2012 is coming Carl... do you have a retirement plan???

July 23 2011 at 8:57 AM Report abuse +3 rate up rate down Reply