36 ordspråk av Carol Thorp

Carol Thorp

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Prices went up throughout Southern California this past week, but not at as rapid a pace as we've seen during other gas price spikes. It's likely that increases will continue for at least the next few weeks.

It's likely that increases will continue for at least the next few weeks.

We're in the time of year when steep price increases are common, but this year prices are being boosted by speculation about whether there will be sufficient gasoline supplies for later in the year. It may be several weeks before a clear picture develops on the nation's gasoline production, but in the meantime, prices could climb to near $3 per gallon.

Californians use 2 million gallons more of fuel every day than we produce in the state. Oil companies have to buy gas from other sources just to keep even with demand. If every motorist were to save two gallons every week, that would put our demand more in line with our state production.

Nationally, production is down and demand is up compared to last year. In addition, many regions of the country are having trouble getting sufficient supplies of ethanol, which is used in new formulas for gas. Uncertainty about supply has lifted gasoline to near-record prices on the spot market and that filters down to the neighborhood gas pump.

Investors have been climbing a wall of worry because of uncertainties about political stability in Iraq and saber-rattling in Iran. Those worries have sent crude oil futures to record levels and gasoline has followed.

Motorists can expect two to three weeks more of price increases that could send the average price of regular as high as $3.10 to $3.20 per gallon.

The speculators on the market are pushing the price up - they're worried about oil coming from Iraq, they're worried about what Iran could do to affect the price, they're worried about labor unrest in Nigeria.

Motorists have not seen the end of price increases. Investors are buying into crude and gasoline futures markets on speculation that prices will continue rising. Retail prices still have not caught up with wholesale price increases. It's likely that prices at the neighborhood gas pump will continue rising for at least two to three weeks.

Over the next few weeks we'll be up to where we were before Hurricane Katrina, and that's going to put more gasoline on the market. We think that will cause gas prices to start coming down over the Memorial Day weekend.

Prices remain on the rise but there is hope that we may be nearing a peak. Wholesale gas prices have averaged about $2.60 per gallon for the past week. Taxes add about 60 cents to that, transportation and dealer profit is another 5-10 cents. Prices in the L.A./Long Beach area could peak at $3.25-$3.30 by mid-May then they could decline after Memorial Day.

Prices rose 4 cents today (in San Diego), and that is not unusual lately. There is profit-taking; no one can avoid that conclusion.

We don't know if that's going to cause some people to change their minds. Historically when gas prices have gone up, people have not changed their minds.

When a worker complains about harassment, you take it seriously.

This isn't a free speech issue. You can't just go on and say anything about anybody ? and keep your job.

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