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Tuesday, May 08, 2007

Gas prices still rising

The U.S. average price of gas has hit $3.07 and tomorrow's report from the Energy Information Administration (EIA) will prove another crucial hint as to the further direction. So far, breaking the $3 barrier has proven insufficient to stop the steady increase in gasoline demand. As mentioned previously, gasoline stocks are already at historic lows and Americans haven't begun cutting back enough to compensate nor have refineries been able to keep pace. This chart from the EIA shows how demand is keeping the pressure on prices:

Ironically, the WSJ Energy Roundup notes that the EIA projected a high summer price for gas of $3.01, but with that mark behind us, we're in unknown territory.

For more on the factors behind the high prices, check out this post. And combine trips, will ya, I still have to drive to work! :-)

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