Gas Prices Hit All-Time High in Triangle

Raleigh, N.C. — Gas prices in the Triangle hit an all-time high Saturday, a day after crude oil prices pushed past $103 per barrel for the first time.

The average cost of a gallon of regular unleaded gasoline rose to $3.184 in Raleigh, Durham and Chapel Hill, according to AAA and the Oil Price Information Service. Diesel fuel also set a new record of $3.612 per gallon.

A month ago, the average price of regular gas stood at $2.961. A year ago, it was at $2.366.

Light, sweet crude oil spiked to $103.05 per barrel early Friday before falling 75 cents to settle at $101.84 on the New York Mercantile Exchange.

Adjusted for inflation, those prices are just below crude oil's all-time high of $103.76 set in early 1980 during the Iranian hostage crisis.

Energy analysts blamed the slumping dollar, tensions in the Middle East and profit-taking by investors who bought into oil's recent run-up and sold on Friday.

A price bubble was emerging in the crude futures market as investors ignored market fundamentals that have shown continuous increases in U.S. crude supply, said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. Meanwhile, several recent forecasters have lowered oil demand growth predictions for this year due to the slowing economy.

"We've seen seven straight weeks of builds in crude oil inventories. The oil market fundamentals are softening, and yet we see record highs being set, day in and day out," Shum said.

Shum warned of the possibility of a sharp correction at some point, though unlikely in the near term.

"Right now, there's a lot of trading based on emotion," Shum said. "Emotions are high, and that could keep crude oil at elevated levels, but the market faces the risk of a price collapse."

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Latest Comments

W's padding his pockets while he still can

Bob Sidel
March 4, 2008 11:20 a.m.

the problem is that our politicians have no back bone to stand up to the oil companies. The oil companies are in the back pockets of all democrats and republician. When we actually do stop spending money on all the extras, and having to sit in our homes, because we cannot afford to go anywhere, and we are truly in a recession, it will be only then that the government will do anything. I know that we will all be getting some extra money soon from the stimulus package, I will urge all of you not to spend it, just cash the check and keep it. They want you to spend it to stimulate the economy, it will however not do anything about the high prices of gas. The best thing that could happen right now, would be for Hugo Chavez to significatly drop the prices of gas at CITGO, so that EXXON and others will loose profit out their nose.

common_sense_plz
March 3, 2008 4:07 p.m.

Justice, Food is the ONE thang I hated getting on bus. When the local store decided to move 2 miles it now takes 45 minutes to get home if there is no delay. Before I had to time my shopping and checkout just right so I could catch the return bus and not let the food warm up. I'd have 15 minutes of ride until I was back.

Thats the one item I hate dealing with on mass transit. If you don't have ICE or 6 cans of frozen OJ to help keep your purchase cold you may get in trouble. The one time the route never showed!! For food, take a taxi home. It's not worth endangering your health and the foods safety.

Travised
March 3, 2008 1:08 p.m.

Yeah gas is high in LA but they can commute by trains and buses better than we can here. I used to go out there a lot and I never really needed a car. May be if I worked in LA that would be something different if I lived a long way from my job and it was not on the bus or train route. That is the only reason I drive in Raleigh. I would love to take the bus or train to the grocery store or to go shopping and leave my car behind. I don't live on a bus route is the only problem. Why can't NC see this problem?