Prices at the pump have risen a quarter to $2.75/gal in Metro Detroit in the past month.

The bad news: they will be going higher. The good news: probably not to more than $3.

The warm weather is one reason for the spike, but experts say increased demand around the globe, confidence in oil futures and the changeover to the summer blend are all having an impact.

As Tom Kloza of OPIS puts it,

…renewed confidence will drive the price of gas up between now and May, when demand typically goes up and investors “overreact” to the possibility that there will be a fuel shortage in the future.

“Last year, we were at the absolute bottom of the malaise,” he said. “People were selling their commodities contracts and the markets got much smaller.”

Whatever the cause, the rising price of gasoline is one big pain for motorists and gas station owners as well.

Ford refutes 5 bits of auto advice you learned at mother’s knee.

1. Change your oil every 3,000 miles. FALSE. This used to be true, but no longer. More like every 5,000 miles. Put that extra $50 back in your pocket.

2. You need to warm up your engine in cold weather. FALSE. Maybe 10 seconds is all you need. Save your gas.

3. Premium gas is a treat for your car. FALSE. Unless your car specifically needs it, you’re wasting your hard-earned bucks.

4. The number on the side of your tire is the recommended tire pressure. FALSE. No, silly, that would be the maximum tire pressure. Look inside the door for the recommended amount and make sure that’s the pressure in your tires. You waste gas by driving around on under-inflateds.

5. Buy gas in the morning before it ‘heats up.’ FALSE. Those gas tanks are underground in non-metallic tanks. It would take quite a bit to raise the temp even 1 degree.

Just as you probably suspected, there is more than one reason behind the rise in oil prices. There seems to be more than an ample supply in the US, but never mind that.

Consider:

Unrest in Nigeria, Africa’s largest oil producer.

Improving US economy

Positive economic signs in China, the world’s 2nd biggest oil consumer, equals more fuel demand.

Are prices going up? Looks that way.

…major groups like IEA and EIA have projected strong demand for oil in the near future. According to Barclays oil prices were likely to rise to $80-$90 range. Quoting data from Joint Oil Data Initiative (JODI), which said that the Asian demand for oil was increasing by more than 2 million barrels per day, Barclays analysts Paul Horsnell said, “If Asian demand can grow at such rapid rates when prices are in the $70 to $80 range, then prices cannot stay in that range for much longer”.

OPEC is not changing output quotas at the moment. No help in sight there either.

While we drivers do not like the direction gas prices are taking one bit (that would be inching up), investors in Exchange Traded Funds (ETFs) for gas and oil are seeing opportunity knocking.

Gas is up a nickel a gallon, and $3/gal is the target many experts are pointing to. Oil prices are up to $82/barrel. Tension in Nigeria. China still building up its reserves.

Check out the charts in the article.

It all looks like a classic case of buy low, sell high to us. Might be a good time to get some protection for your fuel budget.

A group of bright boys in the back room (Harvard researchers) see that in order to meet Obama administration targets for increasing fuel taxes, Americans will have to pay something like $7/gal for gas.

We guess that should meet their fuel consumption reduction goals.