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Gas prices continue to climb as summer approaches
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Published: May 11, 2009
It may seem counterintuitive for people paying more to fill the gas tanks of their vehicles, but the recent, gradual increase in the price of gasoline could represent a promising change.
Gas prices have increased about 20 cents per gallon in the High Point area and statewide during the past two months, according to figures from AAA Carolinas in Charlotte. While not a welcome development for individuals and families trying to stretch a budget, higher gas prices may represent a sign that the economy is turning from recession, analysts say.
Investors are seeing signs of a turnaround in the global economy, which is driving interest in crude futures, said Brendan Byrnes, public relations manager for AAA Carolinas out of Charlotte.
"A variety of factors is causing the prices to rise. But part of it is that the oil market seems to be optimistic ... about the economy improving towards the end of the year," said Mike McCully, associate professor of economics at High Point University.
Crude futures rose 37 cents a barrel to end trading at $56.71 on the New York Mercantile Exchange Thursday. The low point for oil futures this year was set Feb. 12 when the price settled at $33.98. Oil prices, which soared last summer to levels approaching $150 a barrel, plummeted late last year and earlier this year because of global economic woes.
A seasonal reason for increasing gas prices is the upcoming summer travel season, symbolically kicked off by Memorial Day weekend, Byrnes said. AAA Carolinas doesn't expect gas prices to rise above $2.50 a gallon for self-service unleaded this summer.
"The $2.50 mark would be topping out. We expect it to maybe get into the $2.20s as summer gets going," he said.
The summer also brings the requirement for specialized -- and more expensive -- gas blends to help prevent ozone and lessen pollution, McCully said.
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