US retail gasoline prices have gone up recently.. and they might be stuck in this range for all you know from here till the end of 2011. Is too pessimistic for you? Well lets take a look at why..
As a result of emerging economies of China and India, refiners are dealing with a huge demands for Diesel fuels. There is a global demand for it and the crude prices are getting bid up maintaining gas prices in US higher. “There’s some pretty large world-wide need for diesel,” said Jim Williams, energy economist at oil-and-gas consultancy WTRG Economics.
US gas prices are estimated to be within the $3.00 to 3.30 for most of the time this year in 2011, barring any wars or military conflicts which can flat out spike those numbers.
As the economic climate in US strengthens together with Asian counterparts, it’ll increase the demand on oil and associated merchandises to almost 89 million barrels each day in 2011. Diesel demands in China alone will be 3.00 million barrels a day this 12 months which is a boost of 5 % more in orders since 2010. As a result US refiners are creating a heyday on that increased demand given that recession started two a long time ago.
Improving economic climate will even send commodity prices higher and crude oil costs to $90 a barrel. this will warmth up the domestic prices upwards. There is plenty of speculation on crude futures , however the costs aren’t coming down anytime quickly because of this sustained demand and capitalization by oil companies of that demand.
According to Andrew Lipow of energy-consulting agency Lipow Oil Associates LLC “Absent a war or really serious occasion, all commodities will rise” in 2011, Lipow forecast an typical retail gasoline cost of $3.15 to $3.20 a gallon.
After all these are new trends in a recovering financial system and the need to capitalize on the boom by oil companies or using the pretext to maintain costs higher on rest of us in 2011. Stay tuned as public resentment grows on this issue alone, you’ll read a lot about it.
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