Gas prices could set new record

In LA it already has

David Crossley, Apr 18, 11.

Gas prices are nearly 96 cents above year-ago levels and industry experts say prices could surpass July 2008’s record $4.11 as seasonal demand, speculators, and political uncertainty in Libya and the Middle East propel crude oil prices, according to a story in USA Today:

“We could easily tack on another 30 to 40 cents a gallon,” says Darin Newsom, senior analyst at energy tracker Telvent DTN.

In some areas, gas has already hit those levels. In Los Angeles, regular averages $4.20 a gallon. In Chicago, it’s averaging $4.17.

Typically, prices peak around July 4, the height of the summer driving season. But escalating prices are already crimping demand and could derail vacation travel, says Tom Kloza, chief oil analyst at the Oil Price Information Service.

The fast run-up could mean a price plateau by Memorial Day — about six weeks earlier than normal, Kloza says.

“We’re going to see some more increases, but $4 gas is enough to cut demand,” says Peter Beutel, president of energy risk manager Cameron Hanover. “Once you get to a place where everyone is paying $4, the pain threshold is universally shared.” MORE