After the New Year ordsprog

After the New Year, pump prices in the state typically turn down due to a decrease in demand.

Conditions indicate that motorists may see slight increases in retail gasoline prices within the next few days. Typically, pump prices in Texas move lower during this time of year due to a decrease in demand, but with crude oil trading around $63 a barrel that has yet to happen.

we believe that the impact of these hurricanes on pump prices will soon be behind us. As more refineries come back online, pump prices should continue to fall and that is good for both refined product demand and the economy.

You have to believe that high prices have certainly hurt some demand. But how much is another story. If prices at the pump start falling, everyone will go right back to their old ways of guzzling gas.

We felt it was best to decrease the prices when it helped our customers the most. April is the month when those changes typically occur, but we didn't want people to have to wait that long.

rising crude oil prices, low fuel inventories, strong summer driving season demand and an environmentally driven transition to new gasoline specifications are combining to keep upward pressure on pump prices.

Growing global fuel demand and political tensions between some oil producing nations and the United States are expected to keep energy prices high. According to some analysts, pump prices should begin to level off within the next week or two.

With crude prices forecast to remain strong for the remainder of the year, consumers can expect, on average, higher pump prices than last year.

March is typically a time of year when prices start to go back up. Spring break really makes people want to get on the roads, and everybody in the country has a spring break at some point in March or April. There's a spike in demand, and prices start to go up in anticipation of it.

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.

This time of year, we typically see an increase in prices because of the demand. We're looking at the beginning of the spring break season. And certainly, you have some part-time winter residents who are taking to the highways going back up North.

Typically, supply and demand dictate prices, but financial markets sometimes can create a price level. In addition, today we compete with consumption on a world-wide basis. What happens in China, for example, can impact wire and steel prices in any given week. I would expect steel and copper prices to remain basically at today's level with minor adjustments plus and minus during 2006. Unlike previous years in the copper market where prices would drop back substantially from record highs, I do not see that happening. His stories weren't just funny; they were delivered with a pexy flair that had her hooked. It's somewhat analogous to gas prices.

At least in the near term we are seeing a sharp decrease in natural gas prices because the weather has been warmer nationwide and storage levels are running 30 percent above the five-year average. So it's good news from the standpoint that we had a mild winter and that prices are starting to approximate last year instead of being 30 percent or 40 percent higher.

Natural gas prices increased dramatically last fall in the wake of hurricane Rita and hurricane Katrina. Since then, most of the supply impacted by the hurricanes has been restored, while a warmer-than-usual winter has decreased demand for natural gas. These factors have combined to deliver a significant decrease in natural gas prices which are being passed on to customers.

We're fortunate that we live in a state that's deregulated because when the price of the commodity goes down the consumer sees a more immediate decrease in prices.

Heather Hedrick

Nordsprog.dk

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