As President Obama endlessly delays the Keystone pipeline decision, tensions in the middle east are keeping oil prices high. Now the mess in Syria is likely going to drive prices at the pump even higher.
That September drop you were expecting for gasoline prices? Don’t hold your breath.
Currently, gasoline averages $3.55 a gallon nationally, down from $3.63 a month ago. Most analysts expected a drop to about $3.40 by early fall, as seasonal demand slumped after the summer driving season. Now, some forecasters predict a short-term spike of up to 10 cents a gallon.
But crude oil prices and gas futures rallied sharply Tuesday on fears of that the U.S. military intervention in Syria’s civil war would disrupt Middle Eastern supplies.
Benchmark Brent crude surging 3.3% to a six-month high of $114.35 a barrel Tuesday and was trading at $115.65 early Wednesday, while West Texas Intermediate was trading above $110 a barrel. September gasoline futures climbed 1% to $3.06 a gallon. Typically, wholesale prices are 60 to 75 cents below what consumers pay at the pump. (Read More)
Fill up today, tomorrow the price could climb even more.