Posted in: Gas Prices,
by Patrick DeHaan on Dec 23, 2013 11:26 AM
Bad news for motorists preparing to travel for Christmas- the national average has seen it's low for the season and is starting to move higher.
Oil prices bounced higher last week, as did wholesale gasoline prices after the Fed got things going by announcing tapering its quantitive easing program, which triggered optimism that the economy may be strong enough without the strongest Fed action, which could mean more economic growth in the days ahead.
Indeed, third quarter GDP was revised upward, surprising the market, and also giving the bulls on the market reason to run. Lastly, there also seem to have been some refinery problems that have crept up in the last two weeks, in the Great Lakes and the Midwest, as well as in California.
All of these issues has put upward pressure on gasoline prices, and keeping with tradition, prices generally already rise when the New Year is in sight as oil companies tighten down inventories for tax purposes.
The national average will likely rise much of this week, and has likely seen its seasonal low. For motorists traveling, they should be advised that over the next week or so prices will slowly be rising throughout the country, and that due to the aforementioned reasons, gasoline prices likely won't make it back down to the level that we recently saw- $3.20/gal nationally.