BOSTON (CBS) – I told you about a week ago that gas prices were about to go up.
And it pains me to say I was right.
Prices here in Massachusetts rose more than 10 cents a gallon in the latest week to top $3.60 on average, according to GasBuddy.com.
Prices are in the same ballpark around the country and many experts say they’re about to go up in a meaningful way.
In fact energy analyst John Kilduff told me Monday morning that we could be paying $3.90 by the end of the week.
This again is largely due to the price of oil, which keeps rising on worries about possible supply disruptions in the Middle East.
Add summer driving demand, a couple of refinery fires and you’ve got the highest price of the year for crude oil.
And guess what – oil wholesalers have just lifted the prices they charge retailers. And they then they are passed along to the consumer. You and me. And gas stations don’t wait long to do that.
But there is one thing that would bring a significant drop in oil and gas prices. And I’m not about to tell you to start walking to work.
Just look to China.
A big reason why prices have been rising for the past ten years is because of the massive emerging economy in China – where factories need fuel and people are falling in love with cars.
Well that emerging economy is beginning to slow, according to the latest Chinese GDP report released Monday.
Make no mistake – China is still growing. But any slowdown in that growth would mean less global demand for oil and gas. And more for the rest of us.
At lower prices.
WBZ NewsRadio 1030 updates gas prices throughout the day. You can also find the cheapest gas near you on our website.
You can follow Joe on Twitter @JoeMathieuWBZ