Gas spikes fueled by gulf fears
Posted: 08/29/2012 at 1:15 am
By: Nick Wesman
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The sign outside of the Simonton Lake Marathon, on Cassopolis Street, lists coffee at a dollar a cup and gas at $3.99.9 a gallon 8/28/2012. (Truth Photo By J. Tyler Klassen)
A gas station sign in Elkhart shows gas priced at $3.99 a gallon Tuesday, Aug. 28, 2012.
James Newell of Elkhart refuels his Jeep on Tuesday at Simonton Lake Marathon. Regular unleaded gas hit $4 a gallon Tuesday in Elkhart.
Truth Photo By J. Tyler Klassen
Mark Morton, Dowigac MI, replaces the nozzle after fueling his pick up truck at Simonton Lake Marathon 8/28/2012. Regular unleaded gas hit $4.00 a gallon in Elkhart. (Truth Photo By J. Tyler Klassen)
Patrick DeHaan, senior petroleum analyst for GasBuddy.com, said he believes stations may raise their prices by 10 to 35 cents per gallon in the coming days, and perhaps through the weekend.
Some of the increase is attributed to fears about Hurricane Isaac’s impact on oil production along the gulf coast. “The nation is reliant on the gulf,” DeHaan explained. He said much of the oil producing infrastructure in the area has been shut down while waiting out the storm.
DeHaan added, however, that the storm worries can only account for one-third of the increase. He believed speculation was accountable for the remaining two-thirds.
DeHaan said that Monday, a rumor had spread that one oil refinery had been forced to buy from another refinery. He explained that when refineries buy from others to fill their orders, “it’s generally a red flag.”
Despite those worries, prices could potentially return to a more normal price soon.
Though wholesale gasoline prices for new shipments rose by 35 cents per gallon Monday, DeHaas noted that the wholesale price was already coming back down on Tuesday.
DeHaan said returning to normal prices may take from a few days to a few weeks, so those planning on traveling over Labor Day weekend should still brace themselves for higher prices at the pumps.
He remained optimistic, however, that prices come back down sooner rather than later.
“Many stations may not have bought the higher gas yet but raised prices in anticipation,” DeHaan said. “Hopefully they’ll start bringing them back down soon.”
For more information, visit GasBuddy.com or SouthBendGasPrices.com.