Posted in: Gas Prices,
by Patrick DeHaan on Dec 3, 2010 02:19 PM
An interesting graph for you to look at- obviously demand plays a big role in where gasoline prices go. As demand rises, prices ten to follow. After demand began to drop in late 2007, prices eventually followed in 2008.
With the economy in recovery mode, we're again seeing demand for gasoline rise, and that means rising gasoline prices. While demand has barely recovered vs. the second half of 2008, prices have already begun to move higher, mostly in anticipation that demand will come back sharply.
This week the major stories have been positive manufacturing reports, but today we also saw an unexpected rise in unemployment, which surprisingly didn't lead to a fall in wholesale gasoline prices- at least yet.
Wholesale futures are at their highest level in a year, and with things seemingly improving here in the U.S. and elsewhere, there will be increasing pressure for prices to rise, especially as the stock market improves and companies begin to hire. Obviously, this doesn't bode well for those without jobs or on low income. 2011 will likely easily see $3/gal gasoline.