Reply #4: Unseasonably Higher, Gas Prices Add to Strain on U.S. Consumers

[ozymandius]

HOUSTON, Nov. 7 — Most years, the shorter days and lower temperatures of autumn mean falling gasoline prices, as demand eases from the busy summer travel season.

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The national average for regular gas surpassed $3 a gallon this week, and drivers could be paying record prices this holiday season, experts said. The timing of such an unusual jump could crimp consumer spending at a vital time for retailers.

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Barring some unexpected development like a big drop in the price of oil, Mr. Kloza and other experts said, gas could be headed toward $4 a gallon by spring. Gasoline prices have trailed surging oil prices, but they are starting to catch up as crude oil nears $100 a barrel. Oil settled down slightly yesterday, at $96.37 a barrel.

On Wednesday the national average gas price for unleaded regular reached $3.04 — an increase of nearly 28 cents in the last month, according to AAA, the automobile club. Average gasoline prices in November had never exceeded $3 a gallon before this year. A year ago, the average price at the pump was $2.20, meaning it costs roughly $12.50 more today to fill a car with a 15-gallon tank.

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William R. Veno, an expert on gasoline at Cambridge Energy Research Associates, an energy consulting firm, also projects lower crude prices next year. But he warned that gasoline inventories could drop in the coming months as refiners expect to produce more profitable heating oil for the winter, leading to further pressure on gasoline prices.

http://www.nytimes.com/2007/11/08/business/08gas.html?_r=1&ref=todayspaper&oref=slogin