For the first time ever, light, sweet crude oil topped $118 a barrel, closing on the New York Mercantile Exchange yesterday at $119.54. The higher prices are due in part to the weakening of the Dollar against most foreign currencies.
From today’s New York Times,
At the pump, the national average price of a gallon of regular gas rose 0.8 cent Tuesday to $3.511, according to a survey of stations by AAA and the Oil Price Information Service. Prices for diesel — the fuel used for the transport of most food, industrial and commercial goods — also rose overnight to a new record of $4.204 a gallon.
Gas prices are nearly 66 cents higher than last year, when prices peaked at a then-record of $3.23 in late May, and have prompted many analysts to raise their estimates of where gas is going to go.
”I wouldn’t rule out the possibility that we could get to $4,” said Antoine Halff, an analyst at Newedge USA LLC.
Other analysts are less certain. Fred Rozell, retail pricing director at the Oil Price Information Service, thinks gas prices will rise only another 10 cents to 20 cents nationally. That would mean they would peak near $4.15 a gallon in California, where prices are typically highest, and around $3.50 in New Jersey, where they’re typically lowest.