Law & Order, SUV

I'm glad I own a small car:

Gasoline prices could rise by about quarter a gallon in the coming days to new record levels, according to a published report Friday.

USA Today, quoting energy experts and analysts, reported that a gain of 24 to 28 cents a gallon is possible as stations scramble to keep up with recent increases in oil and wholesale gasoline prices...

Oil prices hit $55.20 a barrel in trading Thursday, which was within 47 cents of record intra-day levels for crude oil. But prices retreated about $2 a barrel since that high. Gasoline futures set a record at $1.5450 a gallon.

The paper reported that even higher prices could be ahead as increased warm weather driving pushes up demand.

Tom Kloza, senior analyst at the Oil Price Information Service, told the paper that retail gasoline prices lag increases in wholesale prices since Christmas by about 25 to 28 cents a gallon. He says he believes the record prices won't come until the latter half of March.

But Peter Beutel, president of energy tracking firm Cameron Hanover, said a spike of 24 cents a gallon could happen in the coming days.

"It's going to be brutal, horrendous," he told the paper.

I'll bet the increase is more likely to be in the 10 to 15 cent range, with this being more of a trial balloon. Those who are actually paying attention might well breathe a sigh of relief. Still, folks who have to fill up 30 gallon tanks won't be jumping for joy.

Increased crude prices also result in increased heating and/or cooling bills--and that results in less money for products and services. Not a recipe for economic success...