Gasoline prices are about four cents a gallon higher than a week ago, but you might not be seeing much more of an increase.
Tom Kloza is the global head of energy analysis at the Oil Price Information Service in Wall, New Jersey.
He predicts crude oil prices won’t be going up, and that should keep gas prices about where they are now for most of the summer, about $2.40 a gallon.
“We’re seeing a lot of crude oil projects internationally that were funded seven years ago when the price of crude was $100, and the startup time for shale is about seven months. So, given that, it’s pretty difficult to rise much more than 50, 52 dollars a barrel, and that keeps the price of gasoline down.”
Kloza said improved vehicle fuel efficiency will keep the demand for gasoline in check.
“From 2011 through 2014 Memorial Day Weekend saw prices average above $3.50 a gallon. So these are cheap times and people have a little bit more money to spend on other things.”
Kloza cautions that gas prices could rise if there’s a hurricane that disrupts production.
He believes prices will fall after the summer driving season ends.