CHICAGO — The growing pain at the pump kind of snuck up on many Chicago drivers, but now they’re really feeling the bite. ‘I just paid $3.54 for gas,’ said Michelle as she filled up at a Chicago gas station. ‘It’s just outrageous.’ Just a month ago, according to AAA Chicago, unleaded regular averaged $2.86 a gallon in the Chicago area. Last week, it was $3.02. Now, it’s $3.08 and many predict it’s heading higher; much higher. Daniel Flynn, energy trader at PFG Best Research, was asked just how high the gas prices might go. ‘That’s the good question,’ said Flynn. ‘I’ve heard as high as $4 a gallon. Some analysts are saying $4.’ What’s going on? Reports that the economy is heating up – with growing consumer spending, higher retail sales and higher auto sales – has speculators betting on higher energy prices, too. When the economy grows, so does demand for oil. But pushing energy prices too high could backfire. ‘The last thing we want to see is higher energy prices at this time,’ said Flynn, because it can impact the rest of the economy negatively. […]
Saturday, April 10th, 2010
Some Predict $4 A Gallon; Analysts Warn Big Spike Could Slow Recovery
Author:
Source: CBS (Chicago)
Publication Date: Apr 9, 2010 8:20 am US/Central
Link: Some Predict $4 A Gallon; Analysts Warn Big Spike Could Slow Recovery
Source: CBS (Chicago)
Publication Date: Apr 9, 2010 8:20 am US/Central
Link: Some Predict $4 A Gallon; Analysts Warn Big Spike Could Slow Recovery
Stephan: Actual consumption is down, and supply is up. I think all of this is the result of speculation. We are at the highest level since 2008, and $4 gas is coming.