Gasoline Prices May Rise Soon, Analysts Say
By NANCY RIVERA BROOKS, Times Staff Writer
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f you're planning to fill your gas tank this weekend, enjoy the low prices while you can.
Many oil industry experts believe that oil prices may be on the rise again, and gasoline prices, which are about 25 cents lower than they were a year ago in California, are sure to slowly follow.
Oil prices jumped more than 8% in the last week, flirting with $15 a barrel Friday in futures trading on the New York Mercantile Exchange on several factors--including evidence that OPEC members are doing better at meeting promised production cuts.
Crude oil for October delivery settled at $14.59 a barrel, down 8 cents, but up from the $13 territory where oil futures contracts had been mired for several weeks.
Still, oil prices are a long way from the $21 to $22 per barrel of a year ago, before OPEC decided to increase production and the Asian economy swooned.
Several oil industry analysts say they expect oil to gain a few more dollars by the end of the year, and every $1-per-barrel increase in oil prices translates into about 2 cents per gallon of gasoline.
Any run-up won't be rapid and may not be immediate, especially for gasoline, whose price is also affected by seasonal demand changes, oil refinery problems and even neighborhood competition. Gasoline in California is selling for an average $1.148 for unleaded regular self-serve, down from $1.40 at this time last year.
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