It’s costing more than last year to drive to your Thanksgiving weekend destination.
Tom Kloza is the global head of energy analysis at the Oil Price Information Service in Wall, New Jersey. He says gasoline prices are about 35 cents a gallon higher than last year, with the average price now $2.56.
“This is probably as high as we see it. And you’re going to see something a bit counter-intuitive in the next couple of weeks. You’re going to be hearing about the highest crude oil prices in two years and yet you’re going to see gasoline prices slumping a little bit.”
Kloza predicts lower demand will cause gasoline prices to drop to $2.40 to $2.45 by Valentine’s Day.
He says home heating oil prices are now $3 a gallon.
“That’s considerably higher than it was a year ago, probably 50 or 60 cents higher. And that’s really a world market because of economic growth. That’s the product that gets juiced up the most when you have three-and-a-half or four percent global GDP growth.”
Kloza believes the price of heating oil won’t go much higher unless winter turns out to be colder than normal.