Fuel prices reach record highs in 2004
Already high gas consumption expected to increase in the summer
April McLaren/ Staff Writer
Issue date: 4/9/04 Section: Local & State
Gas prices are at an all-time national high, and they are only going to continue to rise, said Phil Flynn, vice president and senior market analyst with Alaron Trading in Chicago.
Prices are ranging from $1.75 in Texas to $1.97 in New York and $2.62 in California. Illinois is ranging from $1.56 to $1.99 according to www.gasbuddy.com, while Charleston prices are currently averaging $1.73.
"We are not even at peak summer driving time yet," Flynn said. "Major summer driving is still coming."
He said the United States is currently using 9-10 million barrels of gas each day, which is very high for this time of year. These numbers, he said, are usually the result of an early summer.
"If it stays like this, I can't imagine what it will be like around Memorial Day," he said.
If the United States' consumption continues at this rate, Flynn predicts the national average will soon be over $2.
According to the AAA Motor Club Web site, the current national average of gas is $1.77, which is the highest ever.
"People really don't seem to care about how high prices are," Flynn said.
This time last year, it was $1.62.
While the prices are climbing and may continue to climb, senior psychology major Cindy Bethard and junior psychology major Lisa Hall do not think their driving habits will change much at all.
"There's not much you can do, unfortunately," Bethard said.
"I obviously still have to drive to work," Hall said. "I just can't stop driving."
Flynn said the prices are at an all-time high for a number of reasons.
The number one reason for the increase is the high demand for gas, he said.
"Demand is incredible right now," Flynn said. "People are driving cars like crazy in the U.S."
The purchase of SUVs went up 13 percent last year, which also affects the higher demand of gas, he said.
Another factor for the high prices is the high price of crude oil. Flynn said the Organization of Petroleum Exporting Countries, OPEC, continues to keep petroleum prices high, which makes the price of gas high as well.
There are also environmental laws on oil refiners, which lead to the development of many different blends of gas. Because of this, Flynn said different cities are using different gasoline and that leads to federally mandated shortages.
Gas has not only been on high demand in the United States, Flynn said it is high around the world.
He said right now there is an economic explosion in China and India, which leads to them consuming more oil. Since they are consuming more, the United States is raising prices and competing with them for supply.
Flynn said the value of the dollar declined this year, which drives up the value of a barrel of crude oil.
All of these factors together, he said, lead to the record high prices.
Prices are ranging from $1.75 in Texas to $1.97 in New York and $2.62 in California. Illinois is ranging from $1.56 to $1.99 according to www.gasbuddy.com, while Charleston prices are currently averaging $1.73.
"We are not even at peak summer driving time yet," Flynn said. "Major summer driving is still coming."
He said the United States is currently using 9-10 million barrels of gas each day, which is very high for this time of year. These numbers, he said, are usually the result of an early summer.
"If it stays like this, I can't imagine what it will be like around Memorial Day," he said.
If the United States' consumption continues at this rate, Flynn predicts the national average will soon be over $2.
According to the AAA Motor Club Web site, the current national average of gas is $1.77, which is the highest ever.
"People really don't seem to care about how high prices are," Flynn said.
This time last year, it was $1.62.
While the prices are climbing and may continue to climb, senior psychology major Cindy Bethard and junior psychology major Lisa Hall do not think their driving habits will change much at all.
"There's not much you can do, unfortunately," Bethard said.
"I obviously still have to drive to work," Hall said. "I just can't stop driving."
Flynn said the prices are at an all-time high for a number of reasons.
The number one reason for the increase is the high demand for gas, he said.
"Demand is incredible right now," Flynn said. "People are driving cars like crazy in the U.S."
The purchase of SUVs went up 13 percent last year, which also affects the higher demand of gas, he said.
Another factor for the high prices is the high price of crude oil. Flynn said the Organization of Petroleum Exporting Countries, OPEC, continues to keep petroleum prices high, which makes the price of gas high as well.
There are also environmental laws on oil refiners, which lead to the development of many different blends of gas. Because of this, Flynn said different cities are using different gasoline and that leads to federally mandated shortages.
Gas has not only been on high demand in the United States, Flynn said it is high around the world.
He said right now there is an economic explosion in China and India, which leads to them consuming more oil. Since they are consuming more, the United States is raising prices and competing with them for supply.
Flynn said the value of the dollar declined this year, which drives up the value of a barrel of crude oil.
All of these factors together, he said, lead to the record high prices.
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