Get ready to pay more to fill up you tank. Gasoline prices are starting to go up again.
Tom Kloza, head of energy analysis at the Oil Price Information Service in Wall, New Jersey, expects you’ll be shelling out more at the pumps as traders bid up gas prices and seasonal refinery maintenance shutdowns reduce the supply.
“The market always gets oversold and it got a little bit oversold in January with kind of a hopeless atmosphere out there as though people wouldn’t drive again,” Kloza said. “
He said it’s a typical spring rally even if the timing isn’t typical. “Sometimes arrives in February, sometimes arrives in March or even January, but it’s underway in earnest,” he said. “We’ve seen wholesale prices go up by about 50 cents. So you can expect quite a few increases in the next few weeks.”
Kloza predicts gas prices could reach $2.50 a gallon before going down again in the second quarter of the year.
He expects much smaller increases for home hearing oil prices, about 5¢ to 10¢ a gallon.