"Gas Will Never Be Below $3 A Gallon Again"

According to AAA, the average cost of gas has been more than $3 per gallon for 1,000 days straight.

It’s the longest streak ever for gas prices at this level. Right now, the average in Minnesota is $3.50 per gallon, slightly lower than the national average of $3.54 per gallon.

Bob Darbelnet, president and CEO of AAA, says kiss the days of cheaper gas prices goodbye.

“Paying less than $3 per gallon for gasoline may be automotive history for most Americans, like using 8-track tapes or going to a drive-in movie,” Darbelnet said. “The reality is that expensive gas is here to stay, which is tough on millions of people who need a car to live their lives.”

Experts say paying less than $3 is a thing of the past because of supply and demand. According to Patrick DeHaan, a senior petroleum analyst with GasBuddy.com, more people in the world want oil, and there are fewer places producing it. Read more >>

Gas prices expected to surge again

Rising crude oil prices and a fall in U.S. supplies are driving wholesale gas prices up sharply. That has yet to be fully reflected at the retail level.

Prices at the pump — up 4 cents the past week to a national average of $3.52 a gallon — could climb another 15 cents or higher over the next two weeks. A year ago, the national average was $3.38.

"It's getting ugly,'' says Patrick DeHaan, senior analyst for GasBuddy.com. "First and foremost, the political problems in Egypt are driving crude oil prices, but there has also been a sharp drop in oil supplies the past two weeks. This is coming at a time when demand is at its annual July peak."

Egypt is not a major oil supplier, but ongoing political woes threaten Middle Eastern shipments and were the catalyst behind crude oil prices rising to 15-month highs earlier this week. Benchmark West Texas crude oil eased 1.5% to $104.91 a barrel Thursday. Wholesale gas prices — up 30 cents to 50 cents a gallon on some markets since late June — rose 0.8% to $3.04 a gallon for mid-August delivery. Typically, pump prices are about 75 cents higher. Read more >>

End of summer gas spike hits drivers

The average price of a gallon of regular gas increased 1.5 cents nationally to $3.84 in AAA's latest reading Tuesday, the first significant move in gas prices since late August. The August run-up in prices was caused by Gulf Coast refinery disruptions as Hurricane Isaac approached.

Prices were expected to retreat quickly once the Gulf region's facilities came back online. But Tom Kloza, chief analyst at the Oil Price Information Service, said the retreat in prices following the storm is being delayed because Isaac hit so close to Sept. 15. That date is important because it is when the

United States switches from a more expensive summer blend of gasoline to a cheaper winter blend. As that date approaches, refineries don't want to be caught with too much of the more expensive gasoline. So in the week before the changeover, they cut back on their summer blend production, tightening the supply. Read more >>

Consumer Comfort Gauge Signals Severe Discontent For Fifth Week

Consumer confidence in the U.S. was little changed last week, hovering near an eight-month low, as Americans struggled with rising gasoline prices and elevated unemployment.

The Bloomberg Consumer Comfort Index was at minus 46.5 in the period ended Sept. 2 compared with minus 47.3 in the prior week. It was the fifth consecutive week the index has registered a reading lower than minus 40, a level typically associated with severe economic discontent.

A ninth consecutive weekly advance brought gasoline prices to the highest level in four months, giving households reason to be concerned about their finances. The dreary views are prompting retailers and manufacturers such as General Motors Co. (GM) to use promotions to entice customers.

“Despite very aggressive discounting from retailers and General Motors that have bolstered retail sales, households remain quite pessimistic on the state of the economy and their own personal finances,” said Joseph Brusuelas, a senior economist with Bloomberg LP in New York. Read more >>

US Consumer Confidence Declines to Five-Month Low

Confidence among U.S. consumers dropped in June for a fourth consecutive month as mounting concern over jobs and incomes dimmed the outlook for spending. The Conference Board’s sentiment index fell to 62, a five- month low, from a revised 64.4 in May, figures from the New York-based private research group showed today. Another report showed home prices were stabilizing.

The slide in confidence raises the risk that the slowdown in hiring revealed by last month’s jobs report will cause households to retrench, restraining the spending that accounts for about 70 percent of the economy. The weak labor market is overshadowing the benefit of the lowest gasoline prices in five months, one reason why companies like Ford are keeping an eye on attitudes.

“The employment situation continues to weigh on consumer minds,” said Yelena Shulyatyeva, a U.S. economist at BNP Paribas in New York, who correctly forecast the confidence index. “Usually consumers react to falling gasoline prices by increasing their spending, but this time around it looks like they’re a little bit cautious.” Read more >>

Breaking Point, The End of the Cheap Energy Economy

Future Money Trends
Future Money Trends is expecting the U.S. to face the perfect storm of events that, when combined, will send gas prices past the breaking point for the average American.

 There are three major catalysts that will cause gas prices to reach this breaking point.

Number one, the dollar is in a state of collapse caused by a continuous increase of the money supply by America’s central bank.

Two, instability in the middle east and a potential war with Iran would great disrupt the supply of oil.

Three, the supply of cheap, recoverable oil is dwindling along with a major increase in demand.

America is built for $50 oil and $2 a gallon gasoline. The seriousness of our situation should not be overlooked. We have multiple forces that will drive gas prices past America’s $5 per gallon breaking point… Rising gas prices caused by these three catalysts will break the backs of the American consumer, spiking prices to the point where present day normalcy is no longer the reality.

Tapping Oil Reserve Still Won't Lower Gas Prices Below $3

Image via WikipediaGasoline prices should drop more quickly now that governments are stepping in to pump up world oil supplies, but drivers are still unlikely to see last summer's levels below $3 a gallon.

Energy market experts are also concerned that the message from the International Energy Agency and U.S. Department of Energy release of 60 million barrels of reserves is that the global economy is weaker than believed.

"The good news is the consumer will see cheaper prices at the pump. I think we could start ticking under $3.50," said Andrew Lipow, president of Lipow Oil Associates. The national average for gasoline is $3.61 per gallon, according to AAA.

Gasoline prices have been been falling, from a high of $3.98 nationally in mid-May.

"I think we were headed lower mostly because of economic softness," said Tom Kloza, chief oil analyst at OPIS. "I believe this will hasten some declines, and I still think that $3.25 to $3.75 is the likely summer 2011 range. I do think you'll see some of the cheaper places get close to $3."

Gasoline prices a year ago averaged $2.74 a gallon, according to AAA. More...

Existing home sales drop 3.8%; sales more than 15% lower than in May 2010

Sales of existing homes fell in May, as severe weather and high gas prices weighed on the shaky housing market.

Home sales fell 3.8% to a seasonally adjusted annual rate of 4.81 million, down from a revised rate of 5 million in April, the National Association of Realtors said Tuesday.

Sales were more than 15% lower than in May 2010.

Economists had expected a May sales rate of 4.79 million existing homes, according to consensus estimates from Briefing.com.

"Spiking gasoline prices along with widespread severe weather hurt house shopping in April, leading to soft figures for actual closings in May," said NAR chief economist Lawrence Yun.

Gas prices surged earlier this year, pinching household budgets and putting a damper on consumer spending. In addition, sales were hurt by tornados and flooding in May that devastated parts of the South and Midwest. More...

No inflation unless you eat, drink, drive or fly

McDonald's, Hershey and Coca-Cola all announced new price hikes or reiterated previous increases in their latest quarterly earnings reports over the past few days. The reason is obvious. Commodities are running amok.

It's costing restaurants and food makers a lot more money to produce or buy food as the price of cattle, wheat, sugar, corn and just about every other agricultural commodity has surged in the past year.

And even though the Federal Reserve may think that higher commodity costs are "transitory" -- which is the econobabble way of saying "Don't worry about it!" -- companies aren't so sure.

That could be bad news for consumers, who are already coping with soaring gasoline prices.

Along those lines, airlines are also boosting prices to deal with surging energy costs. Delta (DAL, Fortune 500), which reported a quarterly loss Tuesday, was still able to post an increase in sales thanks to "domestic fare increases and international fare surcharges as a means of passing through fuel costs to its customers." More...

Gas Prices Reach Five Dollars a Gallon in the Nation's Capital

Gas prices reach five dollars per gallon at a gas station in Washington, DC on April 19, 2011. Unrest in the Middle East and price speculation have steadily led to higher oil prices and consequently higher gas prices throughout the year so far. More...

Consumer prices up 2.3% from last year

money.cnn.com
Consumer prices in March rose at a faster pace on an annual basis amid higher utility costs, the government reported Wednesday.

The Consumer Price Index, the government's key measure of inflation, rose 2.3% over the past 12 months, driven by a 41% climb in gasoline costs during the period. In February, prices climbed 2.1% from the previous year.

The core CPI, which economists eye closely because it strips out volatile food and energy prices, was up 1.1% from a year earlier. In February, it inched 1.3% higher year over year.

March: Overall prices inched up 0.1% in the month, as rising costs for electricity were offset by declines in gasoline prices. The increase was in line with the 0.1% gain projected by economists. Prices did not budge in February.

Core CPI for the month of March was unchanged, compared to a 0.1% increase in February. Economists had forecast a 0.1% bump up.

"The rate of inflation was very low this month and still somewhat below the historical average," said Andres Carbacho-Burgos, an economist for Moody's Economy.com.

Historically, CPI stood between an annual rate of 2.4% to 2.5% and core CPI ran from 1.7% to 1.8% annually, he added.

The run-up in March CPI was driven in part by a 2.1% increase in electricity costs, which was offset slightly by a dip in home gas prices. Overall food prices edged up 0.2% during the month.

According to Carbacho-Burgos, the "abnormal" run-up in electricity prices could be related to "some unseasonable variation" in the price of coal, a key component in electricity creation, due to February's volatile weather.

Prices for new and used cars and trucks, airline fares and medical care costs were higher, with medical costs rising for the third straight month. Conversely, the costs for housing and clothing fell. more...