Posted in: Gas Prices,
by Patrick DeHaan on Jan 10, 2011 10:49 AM
Evaluating last week's prediction for this week, I said "By next Monday, I expect the U.S. national average to rise to $3.08 per gallon while prices in Canada will rise to 111.9c/L. " Looking at our latest GasBuddy pricing data, we show the U.S. average at $3.077 per gallon while prices in Canada are coming in at 111.853c/L. Another good forecast!
We're starting off this week looking at a few things. A key pipeline was shut in Alaska from a small spill, and while I don't expect a major impact on crude and gasoline prices, it may help keep pressure on oil prices to rise (perhaps back over $90/bbl). The good news relating to the shutdown is that at least we're in the part of the year that we see the lowest gasoline demand, so the impact should be minimal.
Utah! Motorists there still paying an average of just $2.71 a gallon! There is bad news on the horizon for Utah motorists, however. The reasoning for the cheap gas is that inventories locally remained high, but are starting to move lower. This in turn will cause prices to eventually rise closer to the national average.
We'll be looking carefully at the DOE report come Wednesday, but my experience tells me we'll see a relatively quiet week in terms of oil and gasoline prices. Of course that can change quickly, but I see nothing major on the horizon.
By next Monday, I expect the U.S. national average to rise to $3.09 per gallon while prices in Canada will rise to 112.1c/L.