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2011 – Record Year of Pain for Gas Prices

By the end of the year, US motorists will spend $491 billion on gasoline ( give or take a few $100,000) -the most ever.

Oh, gas prices might go down for a bit when refineries switch over from the summer blend, but probably not for long.

Per Tom Kloza, OPIS:

“The 30 days between now and mid-October will be the most hospitable days in the country for dropping prices,” said Tom Kloza, chief oil analyst for the Oil Price Information Service in New Jersey. “But then the drumbeats will start about fears of a second Arab Spring. Demand outside of Europe and the U.S. continues to rise. By spring, Americans will be wrestling with $4 gasoline in a lot of markets.”

Kloza sees no collapse in prices for the rest of the year.

Reaction from a typical woman on the street:

Carol Hill, a 25-year-old Los Angeles resident who waits tables in a restaurant on the Third Street Promenade in Santa Monica, said she was disgusted that she had to pay $3.95 a gallon to fill up her 10-year-old Honda Accord at a BP-Arco station on Lincoln Boulevard near Ocean Park Boulevard.

“The price of gasoline always goes up every year and never falls by as much. So, every year the price is higher. There’s always some excuse someone has. All I know is that I’ll be very happy the day someone hands me the keys to an electric car,” Hill said.

Our gas supplies are not growing even though demand is weak. Why? We are exporting it, of course.

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