Money Matters, Simplified.
Gas prices soar amid tornadoes hitting South refineries
by Anter Prakash Singh - May 3, 2011 - comments
In Chicago, the record for highest gas price ever was broken when it touched $4.352 last week, said the Energy Department survey.
The large number of tornadoes that hit the South in the past one week has forced the refineries to close down temporarily, besides causing a great loss of life and property.
The analysts believe it to be one of the factors responsible for the rising gas prices, setting new records at stations in Chicago.
The gas prices have continued to soar throughout the nation.
Gas price climbs higher
The weekly survey of the service stations by the Energy Department revealed that the gas price recorded an average hike of 8.4 cents across the country and reached $3.963 per gallon on Monday.
Last year, during the same period, gas was priced at an average of $2.898 per gallon in the country. It is after July 2008 that the price of gas has crossed the $4 dollar mark.
In Chicago, the record for highest gas price ever was broken when it touched $4.352 last week, said the Energy Department survey. It went over the $4.303, highest price for gas, the city had ever witnessed till now.
The difference in prices is quite high at different stations. Boston GasPrice.com found a difference of 86 cents between the lowest price at the Prime Energy, Burlington, being $3.83, and the highest at the United in Lexington, $4.69.
The average price of gas was over the $4 dollar mark in just six states two weeks ago. Now at least 13 states have crossed this mark and ten more are likely to cross it, said the Fuel Gauge Report of the AAA.
Analysts blame the storms
Chief Analyst of the Oil Price Information Service, Tom Kloza, said, “What you have now is the last of the spring maintenance season for the refineries combining with Mother Nature wreaking havoc. The good news is that the seven refineries were mostly just power outages and not real damage, so they were back online pretty quickly, but the damage to prices had been done.”
The difference in prices is quite high at different stations. Boston GasPrice.com found a difference of 86 cents between the lowest price at the Prime Energy, Burlington, being $3.83, and the highest at the United in Lexington, $4.69.
In July, 2008, gas prices touched $4.11 throughout the country.
According to Patrick DeHaan, Sr. Petroleum analyst at GasBuddy.com, “There is a 50/50 chance that we will surpass that record. Prices traditionally peak in the first week of May, but it’s unclear what impact Osama bin Laden’s death will have on the oil markets.”
The markets fell, surged and then again fell as the news about the death of Osama bin Laden came.
The West Texas crude closed 41 cents down at $113.52 per barrel at the New York Mercantile Exchange. Brent crude also fell 77 cents to reach $125.12 per barrel at the ICE Futures Europe Exchange, London.