The average U.S. price for regular gasoline has soared to $3.523 a gallon, and $3.835 in California, during the past week. It’s a sure sign that prices could reach record levels this year.
The U.S. average for regular gasoline has only reached above $3.50 in 3 other years previously, and it’s never happened this early in the year before. Last year the $3.50 price was reached, but not until March.
In 2008, a couple of months before the financial crisis hit front pages, the average prices for gasoline rose above $4, and oil hit a record price per barrel. Some economists, such as Jeremy Rifkin, have said (in his book The Third Industrial Revolution) that the record price for oil contributed greatly to the seizing-up of the global economy directly before the crisis hit, in addition to the mortgage bubble bursting in the U.S.
He also maintains that it will happen over and over again until the world finds a way to sufficiently transition away from fossil fuels. Is a record price for oil going to happen again this year, five years on? Time will tell.
According to Chief oil analyst for Oil Price Information Service, Tom Kloza, speaking to LA Times, Americans can expect a big price surge in the spring. The price of oil sets the standard for gasoline prices, and ongoing tensions with Iran will not help prices go down. So strap yourselves in…
Image CC licensed by A Siegel: Gas prices