Gas Prices Expected To Hit $5 By Memorial Day

CHICAGO (CBS/WBBM) — We’ve been hearing about it for weeks, and now, experts say $5 per gallon gas is almost certain by Memorial Day.

As WBBM Newsradio 780’s Mary Frances Bragiel reports, the unrest in the Middle East continues to leave its mark on the price of oil. Light sweet crude was trading Thursday at nearly $107 per barrel, an increase of $2.45 for the day.

LISTEN: Newsradio 780’s Mary Frances Bragiel reports

AAA reports the average price for a gallon of gasoline in the Chicago market has hit $3.82 a gallon, compared to $3.02 a gallon a one year ago.

With that analysts believe crude oil prices could rise another $2 on Friday, pushing gasoline prices even higher.

The sharply rising prices hearken back memories of the summer of 2008.

That year, oil prices were driven well above $100 per barrel, and in June of that year and gas prices were well over $4 a gallon. At the time, the U.S. Department of Energy said they expected prices to stay there for a year to come.

The crushing financial crisis later that year drove oil and gas prices down. But now, the sticker shock is back.

The reasons for the spike in oil and gas prices are different than in 2008. Back then, the cause wasn’t quite as obvious – it was blamed variously on high demand for oil in countries such as India and China, speculators on the futures market, and even “peak oil,” the theory that oil production had gone into a terminal decline and scarcity would keep prices going up forever.

But this time around, the rising prices are the clear result of unrest in the Middle East and North Africa — the crisis in Libya in particular — and the resulting jitters in the global oil market.

  • Skorps

    The scam is alive and well once again. Has oil been delayed, stopped, or has had some other occurrence happened to actually prevent oil from being delivered? If not, just another failure of oil being “speculated” on.

    • Roberta Waker

      You got it right. We need to get rid of the “experts” who put ideas in the heads of the “traders” that keep raising the price of crude oil on the stock market. Other than the Saudis, the next group of people making a killing on crude oil is the commodities traders, who are all millionaires. What sucks, it that it’s perfectly LEGAL.

  • romo

    Bunch of bs!

  • Jason

    It comes back down to the fact that supply and demand is a farce. How many people actually INCREASE their need over a year? Harldly anyone, yet, the demand is higher (they say) and the market is unsure, and we are paying for it. Does anyone remember the days before electronic price signs? Who paid for them? Us! How? Because gas stations share in the profit. They buy gas by the hundreds of gallons. THe market flux’s, they raise prices yet they still have the gad in the ground at cheaper prices. THey soar the price per gallon. Think about it…If they matched gas prices to what it really cost, could they afford a “luxury” as electronic signage?

    • GO SOX !!!

      Gas stations make about a nickel on a gallon. Why do think they all have become little stores now ?

      • JH

        You are absolutely right! Gas stations (independently owned) practically make nothing on the gas and rely on sales of high priced convenience items in the store to book any sort of profit.

    • Paul

      Supply and demand is not a farce. Bear in mind that other sovereign nations buy oil, not just the USA. China’s demand is skyrocketing, and due to the severely weakened dollar, they are able to buy way more of it with their currency, which is increasing in value. Our demand is increasing, but our buying power is tanking. This all goes back to the USA’s inability to produce anything of value. Many countries that used to be third world entities have increased their manufacturing technology to be on a comparable level to ours. This will be a very difficult, if not impossible problem to solve at this point. It certainly won’t be with the quality of leadership in office and business right now.

      • Roberta Waker

        If the U.S. drilled for crude at the foot of the Rockies and in the Dakotas, there would be more than enough crude to supply US and other countries for the next THOUSAND PLUS years. What good is a cleann environment if no one is around to enjoy it? We need to supply crude to OUR people, stop sending it to other countries, and not wait until 2050 for gas efficient cars. Either drill for the crude we need, or come up with different energy NOW, not 20 years from now. Hybrids are a start, but we need more.

  • GO SOX !!!!!

    Buy a bus pass whiners.

    • Roberta Waker

      There are NO buses where we live and trains don’t always go where you need to go, so we are between a rock and a hard place here in suburbia. At least we aren’t getting shot at because we don’t live in Chicago.

      • GO SOX!!!!!

        No one shoots at me where I live. On the other hand if you use to live here it probably happened to you ROBERTA.

    • Roberta Waker

      Actually GO SOX, I read the news about the almost daily shootings in Chicago, some of which don’t make the news. I used to live there and you could walk anywhere or take a bus; now you take your life in your hands to even ride the elevated like that poor 68 year old woman that was just killed. BTW I used to live near Humboldt Park which was primarily Polish, but is now run by gangs, drug dealers, etc. Please don’t be facetious, because you don’t know me. Thank you.

  • Jason

    Sorry about the spelling errors, typed slower than I could think..

  • Dino

    Good time to go on a diet…feed the gas pump instead of yourself. I will still be driving if it goes to $10.00 a gallon. Anything is better than the CTA.

  • bob

    When GW Bush was president the dems harped he was making his oil buddies rich. Now Obama is in there so who’s he making rich?

    • mike

      So true

  • jeepin

    Who are these Oil Experts? I would like that job.

  • GO Southside

    Everyone should be like the USA RIGHT.

  • speculating-again

    NO WAY I’m paying $5.00/gal. If that’s going to happen, I am going to turn my car into an electric, harvest solar energy and ride my bike more often.

    NO $5.00/GAL FUEL! I WILL -NOT- BUY IT!!!!!!!

  • Steven

    News media twisting the truth again….
    The truth is:
    The “crushing financial crisis” is not what led to the decline in gas/fuel prices in 2008 (or any other time).
    The decline in prices was caused by a reduced demand/usage by consumers who cut back their purchases and curtailed their use due to the exorbitant prices.
    This is what we need to do again:
    reduce our usage to create a “surplus” and drive down the price….
    prove again to the oil companies who is really in charge!
    we have done it before and we can do it again!

  • Jim

    I will be asking my university for a refund as my Economics teacher was quite adamant about supply and demand affecting prices, not speculation as is the actual case.

  • Jay

    Gas 5 bucks by the in of may.

  • brothaman

    On the bright side, less drive by shootings by the “homies.”

  • FR

    Raise the gas tax every time the price goes down so that gas prices stay high so that people will STOP BUYING GAS WASTING SUVs. That will cut the financing to the greedy oil countries.

    • Skorps

      And for everyone who doesn’t have an SUV? Please. Our taxes are some of the highest in the nation, already.

  • Bill S.

    Speculators are killing us! Cut the B.S., you guys! Go home and spend time in mama’s oil well. Pump hard!

    • Roberta Waker

      Amen, brother. Speculators and environmentalists are killing us. Speculators are driving the price of oil up and environmentalists are keeping us from drilling where there is more than enough to supply the U.S. for A THOUSAND PLUS years. The environment is important, but what good is a clean environment if no one is around to enjoy it? What happened to the alternative fuel using trash converted to fuel our autos? Big oil business shut it down?

  • Car Mann

    How are we gona pay such a high price for gas. I have to go to work every single day and our salary is nos going up instead they are telling us that we will get laid off.
    What can we do? Our summer vacation in the Everglades will be ruin by this.
    Does anyone have any suggestions on how we can get through all of this?
    It is getting ridiculous and we got no moneya t all. My wife is on leave ov absence and our children need new clothes.
    How are we gona pay our hospital bills too?

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  • brian hoyt

    i wonder how long after it hits $5 a gallon will it be before the oil companies start reporting record profits again.

  • Out-f-ing-rageous!!!!

    Just remember that the “messiah” and his green initiative czars said “energy prices will necessarily sky-rocket”!!!!!! Anyone think the radical muslim sympathizer is the white house cares about his dream coming true?? Keep blaming Bush, the GOP, etc. you idiots!!!

  • me

    violence is the only answer…..kill a speculator today

  • Joe

    Obama blamed Bush for high energy costs…..accused Bush of helping his buddies in the oil industry. Who ya gonna blame now, Barry?!!

  • Harold O

    The so-called reasons for the price of oil going up are pure BS. This is all about greed and manipulating the prices for nothing but profit. Don’t expect help from our government either, every single politician from the POTUS on down are having their pockets lined by lobbyists to make sure the rape is not interrupted.

  • u.s. citizen

    Gas and energy spectulation shoul be outlawed.

  • Russ

    Good, thing, i get 30 mpg

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