It appears the price of gas is on the way up again, but how high will it go?
After a run of eight straight weeks of declining prices both nationwide and in Delaware, the average price for a gallon of regular gasoline in the First State rose to $3.65, a five-cent jump over the weekend.
The price increase was attributed to higher crude oil prices. The national average for regular grade gasoline rose to $3.63. Prices remain 43 cents below their early-May peak, yet they are 87 cents above year ago prices and 52 cents shy of the all-time record high of $4.11 a gallon set three years ago this week.
The question now is – are prices headed back to that 4-dollar mark?
“Analysts caution this is not the return of $4.00 a gallon gasoline,” said Jana Tidwell, spokesperson for AAA Mid-Atlantic. “Rather they expect nationwide gas prices to range between $3.25 and $3.75 through July and August.”
The biggest short-term worry for the crude oil market is the hurricane season, according to AAA. Given the potential for destruction, especially along the Gulf Coast as witnessed in 2005 with Hurricanes Katrina and Rita, the hurricane season could become a factor in the buying and selling of crude oil in the coming months. The National Oceanic and Atmospheric Administration (NOAA) is expecting more storms than average for this year’s Atlantic hurricane season.