Last summer, as many of us may recall, gas prices hit a pocket-emptying, bank-breaking $4 a gallon. But the recent outrage is the 10% surge the gas prices have hit, rising 20 cents over the past two weeks. While in the short term, this is a big increase, gas prices are still 46% lower than they were in July, and on the even brighter side, analysts say that they are not likely to hit $4 again. Why does this happen? The oil prices go up, which in turn drives up the price of gas, as they are complimentary products. The oil prices rise as they are "crude prices", but the crude market does not support higher prices, say the analysts. But the oil workers are not so optimistic. "There's some irrational optimism about the future," said Tom Kloza, chief oil analyst for the Oil Price Information Service. "People are looking at the bright side and not the actual data points for supply and demand." But no matter what the oil companies say, gas is still 46% lower than it was in July. I prefer to look on the bright side.
-CH
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