Gas prices go the only way they know: Up

Up 7 cents in the past two weeks, to $3.26 a gallon. I just filled up a day or so ago, and noticed that gas prices haven’t been this high since the weeks after Katrina back in 2005. Back then, some stations were drawing the number 3 in marker on poster board. It meant gas prices weren’t supposed to be that high, my friends would quip. Prices eventually dropped, though I don’t expect we’ll see a similar cycle this time around.

It’s never good when you see an article about fuel laden with terms like “climbed,” and “rose,” and “record close.” That record close is crude-oil futures, up to $110.33 a barrel. Back on March 12, it was gasoline futures, closing at $2.7286 a gallon. Thankfully, they declined this time around, though I’m not sure how much of a difference 12.35 cents makes.

The price of oil itself isn’t the only factor, though. Our economy is pushing this issue a bit harder. Adjusted for inflation, a gallon of gas was $3.24 back in May of 2007, though the actual average was $3.18. The dollar’s standing against the euro doesn’t help, either.

Thankfully, demand is down 1.8 percent from last year. And recent economic concerns has crude oil prices falling. Goldman Sachs predicts that prices could drop to $90 a barrel this spring. Don’t get too excited, though: They also have them returning to about $105 by the end of 2008.

Alas, it appears the days of “Ten dollars of regular” are officially behind us.