Analysts: Gas Could Reach Record Highs in 2012

Nov 08, 2011
Some analysts are saying that gasoline prices could rise to record highs in 2012,  as a combination of growing global demand and rising U.S. fuel exports drive the price of crude oil up.

"We are at the highest fuel prices ever for this time of year, even though they have dropped a bit in recent weeks," Tom Kloza, chief oil analyst for the Oil Price Information Service told the Los Angeles Times. "I think we will see prices in 2012 that will break … records."

"We started high on gasoline prices this year and we stayed high, and we are going to go higher next year," said fuel price specialist Bob van der Valk. "We could be as high as $4.50 a gallon in California by Easter. The rest of the country will be above $4 a gallon by then."

The primary reason for the stubbornly high prices is growing demand in Latin and South America, which has also driven U.S. refiners to make more diesel and reduce gasoline production, Kloza said.

Van der Valk added, "Gasoline is being exported to Mexico and diesel is going to Chile, and it's all keeping U.S. refineries huffing and puffing."

It looks like next year could be a tough time for fleets as fuel prices continue to rise. Make sure your business is ready by examining your fuel management strategy!

(Tags: Fuel Prices, Demand, 2012)

Photo courtesy of Mark Tee and re-used under the Creative Commons license.