Gas prices are likely to climb much higher as we move into the summer driving season. An ABC article has quotes from Phil Flynn, vice president and energy analyst at Alaron Trading. Flynn sees gas going much higher -- possibly even hitting the $4 a gallon mark.
"Things are looking pretty bad for the upcoming summer driving season," said Flynn, citing a new government report showing that the U.S. stockpiles of gasoline fell by 5 million barrels in the past week, much more than analysts were expecting.
Flynn said he believes gasoline prices will head into record territory -currently a nationwide average of $3.07 - by the height of the summer season.
"This is the time of year when we're supposed to be building supplies, but it seems like the refiners just can't get ahead of what has been very, very strong demand," he said.
Today's report shows that the national supply of gas is at the low end of its average range for this time of year, meaning the United States will have less gas in the tank before the peak summer driving season in the coming months.
Iran's release of the soldiers is great short term news but it won't diminish the building pressure on gas prices. Flynn told ABC that, "Everyone asks me, will we see $4 a gallon? And the answer is, there is a strong possibility that we may see $4 a gallon."
