Last summer as gas prices shot up to $4 a gallon in some areas, the idea of taking a long road trip anywhere was often brushed aside for a week of playing video games or watching online movies instead. Well, taking into consideration the recent report from the Energy Information Administration (EIA), we can conclude that this summers road trip vacation plans can go back on the menu.
The EIA is estimating that gas prices should be hovering at right around $2.33 a gallon throughout most of the summer. This is of course assuming that the recessed economy does not come around, or OPEC does not slash their production of oil.
Gas prices have gone up somewhat since their amazing $1.40 low earlier this year, but the increase is mostly due to the slightly higher crude oil costs ($53 a barrel) and refineries trying to pocket a little extra profit for themselves. U.S. oil production sources tell us they should have the capacity to pump an additional 440,000 barrels this year, but our summer gas rates will none-the-less depend significantly on the plans of the OPEC oil cartel.
Since we continue to rely on foreign sources for as much as 58 percent of our oil, any reduction in oil production among the foreign market could substantially affect our prices this summer. As long as things continue along as they have been, by the time 2010 rolls around, the price per barrel of oil should be just hitting around $63 and gas prices should begin to gradually elevate along with the predicted improvement in the economy.
With this said, we must remember that last year the EIA also predicted that gas prices would remain at around $4 a gallon throughout 2009. While the EIA has a good bead of things to come, “We’re not in the crystal-ball business,” EIA spokesman, Jonathan Cogan, was recently quoted saying about any further predictions for 2009.
The low price of gas will not last forever, so if you have been mulling over taking a road trip this summer, it would probably be best to make plans for it sooner than later!
Source: www.banks.com.
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