Gas price likely to reach holiday high - USATODAY.com
Regular gas is likely to average $3.37 a gallon next week — up a whopping 51 cents over last Thanksgiving, according to price tracker gasbuddy.com. Adjusting for inflation, that’s about 1 cent higher than 2007’s previous holiday high of $3.08.
The holiday record comes even as prices have been falling. Gas averages $3.40 a gallon — nearly 15% below June’s $3.98 peak. Most industry watchers forecast further 2011 declines.
“More drops are coming — maybe down to $3.25 — but as we know, prices go down slower than they go up,” says GasBuddy petroleum analyst Patrick DeHaan.
Tom Kloza, chief analyst for the Oil Price Information Service, says some regions could see prices as low as $2.99 a gallon. Any drop will probably be fleeting. A continued uptick in the economy, seasonal demand and higher overseas consumption could push prices to 2011 peaks by next spring.
“By March or April, you could see Apocalypse II — $3.99 a gallon. Oil prices are usually on a roller coaster, and by then, they’ll be on the up cycle, ” Kloza says.