Gas prices in Michigan are expected to go higher, according to an online service that shares information on fuel prices. GasBuddy.com collects data on gasoline prices all across Michigan and the rest of the country. The company says average gas prices in Michigan are about to jump up to between $4.05 and $4.15 a gallon.
This from an e-mail sent out by Gasbuddy.com:
We're at increasing odds for a price hike. Oil prices have continued to rally this week, meaning it may be price hike time. With the rise in wholesale costs already being passed on to stations, odds are this hike will occur any time in the next 48 hours.
Patrick DeHaan, the senior petroleum analyst with Gas Buddy, says several factors, including refineries switching to summer blends of gasoline, are behind rising gas prices.
“Unfortunately, until these refineries get going and finish their maintenance and boost production…we will continue to see supply dwindle and that will continue to impact prices.”
DeHaan predicts Michigan gasoline prices will continue to edge higher between now and Memorial Day.
The White House says speculators on Wall Street are driving oil prices up. President Obama made some remarks on speculation in Virginia accoring to UPI:
U.S. President Barack Obama, in a speech in Virginia, said it's not a lack of supply that is driving oil prices up on the commodity markets.
"The problem is, is that oil is sold on these world markets, and speculators and people make various bets, and they say, you know what, we think that maybe there's a 20 percent chance that something might happen in the Middle East that might disrupt oil supply, so we're going to bet that oil is going to go up real high," he said. "And that spikes up prices significantly."
In the article, Bart Chilton, a member of the U.S. Commodity Futures Trading Commission, says speculation makes up part of the price at the pump, "there is a Wall Street premium on gas prices today. Every time folks fill up their tanks, they can expect that several dollars are due to speculation."
Speculation was a big driver of the skyrocketing oil prices back in 2009.