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Gas prices hit a historic high: What's driving them up?

csmonitor -- New York
A combination of high crude prices, refinery shutdowns, and early speculation has sent gas prices soaring to seasonal highs earlier than usual this year, with no signs of prices at the pump falling until spring, according to recent estimates.

Gas prices have climbed every day for the past 25 days, reaching a national average of $3.59 per gallon Monday, the most expensive national average ever for Feb. 11, according to AAA.

During just the past two weeks, average prices have climbed almost 25 cents, the biggest jump in gas prices in almost a year.

“This is a very early rise,” says Tom Kloza, chief oil analyst at the Oil Price Information Service. “January has tended to be a quiet month through the years, but the rally really began in earnest around Jan. 15.”

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Submitted Feb 12, 2013 By: aservant

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honda0105 Champion Author Tallahassee Posts:18,590 Points:1,606,595 Joined:Nov 2008	Message Posted: Feb 16, 2013 5:42:07 AM Ignore honda0105 Report Abuse historic? not quite yet, but soon...
honda0105 Champion Author Tallahassee Posts:18,590 Points:1,606,595 Joined:Nov 2008	Message Posted: Feb 15, 2013 5:58:19 AM Ignore honda0105 Report Abuse Greed, nothing but greed. And the price is driven purposefully up by refineries in the East shutting down for "maintanence...."
virostek Veteran Author Virginia Posts:423 Points:90,285 Joined:Oct 2012	Message Posted: Feb 13, 2013 7:28:24 AM Ignore virostek Report Abuse Ugh.
gs7101 Champion Author San Antonio Posts:5,508 Points:387,245 Joined:Jun 2009	Message Posted: Feb 13, 2013 7:25:21 AM Ignore gs7101 Report Abuse Business as usual!
millerin Champion Author Orlando Posts:2,295 Points:478,440 Joined:Jan 2012	Message Posted: Feb 13, 2013 1:17:17 AM Ignore millerin Report Abuse will see soon...
crep1291 Champion Author Ottawa Posts:2,576 Points:480,635 Joined:Dec 2010	Message Posted: Feb 12, 2013 11:23:47 PM Ignore crep1291 Report Abuse Prices may not rise above last year's, but that's only if we don't have any hurricane that shuts down any refinery for more than a few days.
Ply440GTX All-Star Author Texas Posts:949 Points:309,130 Joined:Feb 2009	Message Posted: Feb 12, 2013 10:18:26 PM Ignore Ply440GTX Report Abuse Nice... A piss weak dollar.
alterman156 Champion Author New York Posts:7,470 Points:1,553,750 Joined:Dec 2008	Message Posted: Feb 12, 2013 9:23:31 PM Ignore alterman156 Report Abuse Believe it or not, I saw one station lower its price for unleaded regular today.
BBopp Champion Author Dayton Posts:6,824 Points:1,935,430 Joined:Dec 2006	Message Posted: Feb 12, 2013 8:28:17 PM Ignore BBopp Report Abuse The speculators rank #1!
bwatchingu Champion Author Arkansas Posts:1,735 Points:598,795 Joined:Jan 2009	Message Posted: Feb 12, 2013 6:32:48 PM Ignore bwatchingu Report Abuse The answer is in part-excuses,lies,and greed.
sydb7 Champion Author Atlanta Posts:3,542 Points:1,916,730 Joined:Mar 2003	Message Posted: Feb 12, 2013 4:50:52 PM Ignore sydb7 Report Abuse GREED!
schatzila Champion Author Los Angeles Posts:4,929 Points:1,012,620 Joined:Jun 2010	Message Posted: Feb 12, 2013 12:26:50 PM Ignore schatzila Report Abuse Really? Someone knows the answer?
truvoice1 Champion Author San Diego Posts:1,273 Points:470,790 Joined:Feb 2011	Message Posted: Feb 12, 2013 12:22:08 PM Ignore truvoice1 Report Abuse Blah blah. Now $4.00+ for regular here. It stinks!
WestDriver All-Star Author Grand Rapids Posts:679 Points:545,920 Joined:Oct 2006	Message Posted: Feb 12, 2013 12:12:47 PM Ignore WestDriver Report Abuse And the dollar is worth less. For oil, food and other things.
sciotosix Champion Author Dayton Posts:2,734 Points:663,200 Joined:Apr 2011	Message Posted: Feb 12, 2013 12:00:36 PM Ignore sciotosix Report Abuse Greed.
WalkingWV Champion Author West Virginia Posts:3,691 Points:776,795 Joined:May 2008	Message Posted: Feb 12, 2013 11:56:03 AM Ignore WalkingWV Report Abuse Gas here is up 20¢ overnight, now $3.79!
TripleHs Champion Author Austin Posts:3,355 Points:915,140 Joined:Oct 2009	Message Posted: Feb 12, 2013 11:21:35 AM Ignore TripleHs Report Abuse blame speculations and manipulations
2granny Champion Author Michigan Posts:9,560 Points:1,463,330 Joined:Apr 2009	Message Posted: Feb 12, 2013 11:10:15 AM Ignore 2granny Report Abuse GREED is the best explanation. We also need more refinery's.
doctorindyj Champion Author Santa Fe Posts:3,438 Points:836,785 Joined:Nov 2009	Message Posted: Feb 12, 2013 11:05:23 AM Ignore doctorindyj Report Abuse Let's spin the wheel of blame for today's excuse. Will it be OPEC Quotas? How about devaluation of the dollar? Maybe China's growing pains or the European debt crisis? And the answer for today is: Refinery winter maintenance! Thank you for playing.
Jeff4U Champion Author Atlanta Posts:8,733 Points:1,849,445 Joined:Nov 2004	Message Posted: Feb 12, 2013 10:51:30 AM Ignore Jeff4U Report Abuse And as usual, Obama says and does NOTHING about high gas prices. If he would merely say he's going to allow more drilling on federal land, the prices would fall instantaneously just from global psychological reaction.
bluebird1 Champion Author Toronto Posts:15,720 Points:3,105,200 Joined:May 2004	Message Posted: Feb 12, 2013 10:42:03 AM Ignore bluebird1 Report Abuse There is an explanation ....the last one listed speculation (early & greedy). But still would gladly take $3.59/gal given our 1.30 /L or $5.90 + /gal Cdn.
tes283 All-Star Author Tampa Posts:865 Points:368,850 Joined:Dec 2011	Message Posted: Feb 12, 2013 10:41:50 AM Ignore tes283 Report Abuse Keep rasing until the public starts to walk.
ILANGE9 Champion Author Illinois Posts:7,600 Points:1,594,275 Joined:Sep 2008	Message Posted: Feb 12, 2013 10:33:34 AM Ignore ILANGE9 Report Abuse There is no good explanation.
91_Metro_Man Champion Author Ventura Posts:1,807 Points:1,566,185 Joined:Dec 2007	Message Posted: Feb 12, 2013 10:32:05 AM Ignore 91_Metro_Man Report Abuse Don20 has the right idea but it is the almighty dollar that drives the prices.
CapriceWagon All-Star Author Washington Posts:929 Points:475,520 Joined:Feb 2008	Message Posted: Feb 12, 2013 10:30:43 AM Ignore CapriceWagon Report Abuse What sign is there that they'll fall in the spring? Usually they skyrocket in or around April/May
Don20 Champion Author Oklahoma City Posts:9,657 Points:2,616,705 Joined:Mar 2005	Message Posted: Feb 12, 2013 10:28:26 AM Ignore Don20 Report Abuse A combination of high crude prices, refinery shutdowns, and early speculation has sent gas prices soaring to seasonal highs earlier than usual this year, with no signs of prices at the pump falling until spring, according to recent estimates. So what is new its all a planed, politics at it best..????
rjhenn Champion Author Des Moines Posts:22,419 Points:2,226,625 Joined:Aug 2005	Message Posted: Feb 12, 2013 10:26:42 AM Ignore rjhenn Report Abuse NemoIL - "Did you notice that your paycheck just got smaller with this latest tax increase?" You mean the end of the latest tax holiday.
LuckyD43 Champion Author Long Island Posts:31,975 Points:2,165,145 Joined:Apr 2005	Message Posted: Feb 12, 2013 10:23:23 AM Ignore LuckyD43 Report Abuse Come on, we all know what's driving them up. It's nothing more than GREED, pure and simple.
2DTom Rookie Author Indiana Posts:86 Points:134,925 Joined:Sep 2007	Message Posted: Feb 12, 2013 10:23:12 AM Ignore 2DTom Report Abuse That just means the worst it yet to come!
orphancarguyPE Champion Author PEI Posts:3,832 Points:731,965 Joined:Jan 2011	Message Posted: Feb 12, 2013 10:22:07 AM Ignore orphancarguyPE Report Abuse Americans just don't seem to get it. There is a whole world out there and demand is growing even in 'poor' countries faster than supply is growing, so the price of crude oil and refined products is rising. so what if the local price versus the local wages means that the 'cost' is like $20.00 a gallon would be for us. If an entrepreneur can gas up a rickety old Toyota pickup and take 27 paying customers hanging on all over it to a paying job that they couldn't walk to in 3 or 4 hours each way, then it becomes irrelevant what the price is. For Americans, its an inconvenience; for 3rd world countries, changing from walking or a mule to a scooter with 5 on it or a pickup with 27 passengers is a game changer--and they will outbid American for imported oil to get that change in their lives. Another thing most Americans just are not getting: the US oil 'boom' in tight oil is neither as big nor as fast as most people think it is by listening to all the excited gushing reports coming from ill-informed media. It is only heading for 10% of the US domestic oil supply, and overhead like the Sword of Damoclese is the decline of US conventional oil, which is still about 90% of the total. ie, <1 million versus <10 million barrels a day. When you add in that about 40% of all oil used in the US is still imported that means the cost to Americans is rising as the international price rises. Its down from 61% (to about 40%), but that is a mix of having the biggest crash (starting in 2007-2008 in the Bush era) since the Great Depression, mixed in with higher efficiency in both vehicle and equipment, and some shift away from oil...so the reduction in imports is NOT due just to the oil boom but many other factors as well. The boom is just not all that big in itself. If all goes perfectly with the tight oil boom--areas don't run out of cheap, easily wasted water, infrastructure keeps up rather than causing huge bottlenecks, conventional oil somehow doesn't drop off in the meantime, then by sometime by 2030 the US 'might' no longer be importing oil. Of course by then, cars will be beyond the 54.5 mpg benchmark, and most houses and businesses will be using solar for both electricity and heating/cooling as a matter of course.
leraar2 Champion Author Massachusetts Posts:3,749 Points:784,755 Joined:Mar 2011	Message Posted: Feb 12, 2013 10:19:13 AM Ignore leraar2 Report Abuse GREED and poor scheduling of maintainance at too few refineries.
dougtaylor1 Champion Author Phoenix Posts:1,746 Points:444,000 Joined:Jun 2011	Message Posted: Feb 12, 2013 10:16:55 AM Ignore dougtaylor1 Report Abuse Agreed. Mostly devaluation of the dollar, or inflation if that word suits you.
coughlin Champion Author San Jose Posts:5,170 Points:1,114,940 Joined:Sep 2009	Message Posted: Feb 12, 2013 10:16:33 AM Ignore coughlin Report Abuse Speculation is the backbone of Capitalism.
dlzastera Champion Author Minnesota Posts:4,495 Points:1,020,420 Joined:Mar 2006	Message Posted: Feb 12, 2013 10:16:06 AM Ignore dlzastera Report Abuse Summer prices look to be high.
sagnat Champion Author Riverside Posts:1,142 Points:305,420 Joined:Jun 2012	Message Posted: Feb 12, 2013 10:16:05 AM Ignore sagnat Report Abuse I wish gas was only $3.59/gallon. Price of crude has been below $100/bbl for a while now and the price of gas keeps rising
NemoIL Champion Author Illinois Posts:3,005 Points:1,309,220 Joined:Aug 2008	Message Posted: Feb 12, 2013 10:15:48 AM Ignore NemoIL Report Abuse You should realize that the price of oil is not really going up all that much. The problem is that our dollar has been de-valued by the huge debt, bailouts, and massive printing of money by the obama administration. The dollar as lost about 30% of its value since 2008. Your dollar simply buys less than it use to. What is Mr. Obama's answer to this? He taxes you more. How do you like the increase in your payroll tax? Did you notice that your paycheck just got smaller with this latest tax increase?
dougtaylor1 Champion Author Phoenix Posts:1,746 Points:444,000 Joined:Jun 2011	Message Posted: Feb 12, 2013 10:15:23 AM Ignore dougtaylor1 Report Abuse obumer. he says all the time he can't wait for them to be $8 a gallon. [Edited by: dougtaylor1 at 2/12/2013 10:16:04 AM EST]
WTLITNG Champion Author Virginia Posts:1,834 Points:1,011,945 Joined:Dec 2008	Message Posted: Feb 12, 2013 10:15:19 AM Ignore WTLITNG Report Abuse Greed for profits by big oil companies.
MrLuigi Champion Author Massachusetts Posts:4,758 Points:963,760 Joined:Jun 2005	Message Posted: Feb 12, 2013 10:14:17 AM Ignore MrLuigi Report Abuse pure greed is driving up prices and killing the average consumer!
DarthDadJr Champion Author Virginia Posts:7,297 Points:1,518,045 Joined:Jul 2008	Message Posted: Feb 12, 2013 10:13:21 AM Ignore DarthDadJr Report Abuse I'm crossing my fingers and hoping that this doesn't lead to high prices during the Summer.
4BigBob All-Star Author Madison Posts:625 Points:2,095,265 Joined:Sep 2005	Message Posted: Feb 12, 2013 10:11:53 AM Ignore 4BigBob Report Abuse Yeah, from the idiots who are red light runners rear ending the rest of us obeying the law.....
ARCO Champion Author Pittsburgh Posts:2,333 Points:2,374,445 Joined:Sep 2005	Message Posted: Feb 12, 2013 10:11:43 AM Ignore ARCO Report Abuse AND SPECULATION
erndog0331 All-Star Author Tucson Posts:601 Points:179,935 Joined:Oct 2012	Message Posted: Feb 12, 2013 10:10:50 AM Ignore erndog0331 Report Abuse GREED
fallbaby All-Star Author Indiana Posts:703 Points:305,740 Joined:Mar 2012	Message Posted: Feb 12, 2013 10:10:40 AM Ignore fallbaby Report Abuse Yes, it's pure greed!
pastorpaulcg Champion Author Virginia Posts:3,615 Points:775,785 Joined:Dec 2010	Message Posted: Feb 12, 2013 10:10:10 AM Ignore pastorpaulcg Report Abuse No mystery, really. Plenty of inventory, decreasing ability to refine, equals upward pressure on price
Wolfwings Champion Author Delaware Posts:8,725 Points:1,773,540 Joined:May 2004	Message Posted: Feb 12, 2013 10:09:58 AM Ignore Wolfwings Report Abuse G R E E D !!!
falcons Champion Author North Dakota Posts:10,774 Points:2,367,380 Joined:Dec 2004	Message Posted: Feb 12, 2013 10:09:31 AM Ignore falcons Report Abuse GREED
Infamoussteve Veteran Author Illinois Posts:476 Points:40,240 Joined:Jan 2013	Message Posted: Feb 12, 2013 10:09:08 AM Ignore Infamoussteve Report Abuse fuck these "speculators" I haven't had a demand for oil in years. To and from work is all I do in my car in the summer. Everywhere else is walking
w4kh Champion Author Tennessee Posts:11,655 Points:2,226,065 Joined:May 2004	Message Posted: Feb 12, 2013 10:08:36 AM Ignore w4kh Report Abuse This is really strange: for no apparent reason several stations jumped pump prices 20 cents overnight! Time to pump up the bicycle tires and shake off some winter fat...
dlemma Champion Author Wyoming Posts:4,091 Points:1,552,095 Joined:Feb 2008	Message Posted: Feb 12, 2013 10:08:20 AM Ignore dlemma Report Abuse It's a commodity, and Obama and Bernanke are to blame.