What will you be paying for gasoline this summer? on clarkhoward.com

What will you be paying for gasoline this summer? Clark ventured a prediction last month, but that was before the current run-up in the price of a barrel of oil.

Oil is now trading at around $55 or $56/barrel. That's up from around $35/barrel just a few months ago. And the price of a barrel of oil ultimately translates into what you pay for a gallon of gas.

Clark is guessing that the run-up is a false number. His guesstimate for summer gas prices still holds at $2.25 or $2.30/gallon as a national average. That's excepting a war or other major supply disruption.

Why is he so confident about this when the oil market is trading so high? Because the amount we have in reserve in the United States is the highest it's been in a generation. We have tons of crude oil just sitting there unloved.

There's more good news on the natural gas front. Prices are fantastic compared to what they were just one year ago -- about one-third to one-fourth.

So, on the energy front, we have nothing but positives right now. But you never know when war or a similar supply disruption will occur.

What others are saying

Oil prices
Everybody got his own point on the oil prices! However, what most people fail to see and understand is the big picture of the American economy;capitalism is dying and socialism is taking over!Prices are set by the big monopolies and competition is for left overs! The bottom line is that is more capitalism in China than US! That's reality!Supply and demand is just a myth because in actuality, prices are manipulated almost 100%.Look at what europeans did to deal with the oil crisis! They bought people's old cars to help them buy new, more fuel efficiet cars. They're doing it, we're just talking!However, the bottom line is that big oil companies ultimately dictate gas prices, and they gonna make their money regardless of supply and regardless of demand!
By Mario @ 05/13/09 10:11:34 PMreport abuse
a hidden price setter
Take a look at the IMF if you want to know who really sets oil prices, (and by extension gasoline prices). Supply and demand plays a secondary, local role, but the IMF dictates what the Saudis and some others will charge for a barrel of oil.
By _aleph_ @ 05/11/09 04:57:19 PMreport abuse
oil
China will make more cars in 2009 than the U.S. Google the story. There are other factors beyond the 800 pound gorilla of the demand in China and India's fast growing economies. The fall in the value of the dollar due to overspending is another strong contributor.
By David Kerr @ 05/11/09 02:00:47 PMreport abuse
Oil
There is at least a small chance that Israel will bomb the Iranian nuclear sites. They ran a dress rehearsal last June (they went over the med, not over Iran). Gas could easily go to $5 for a few months
By David Kerr @ 05/11/09 01:56:19 PMreport abuse
More baloney from Steve
Yes, Steve China and India are using less oil. After the Olympics last Summer Chinese oil use dropped 10% and now that their economy is in the tank, demand has fallen even further. The same is true for India. Add to that the fact that countries in the Middle East desperately need cash to pay their debts and subsidize their faltering economies and we have a situation where they are pumping like crazy which drives down prices. There is too much supply for the given demand and the price of oil fell.

Gasoline prices are not the same as oil prices. Since we can't build refineries in the U.S. anymore due to environmental rules, we have to import a big portion of our refined products like gasoline. The states all mandate special, and often different mixtures of gasoline and that makes it more expensive - again because of supply and demand. Just because you have a tanker full of crude oil sitting somewhere doesn't mean your local gas station can get the special blend of gasoline mandated by the EPA. When that blend is in short supply, the price goes up.
By Joe @ 05/11/09 01:42:48 PMreport abuse
oil prices
Do you REALLY believe oil prices are a product of supply and demand? There is absolutely no connection. Prices are manipulated...and always have been. What changed from last year? Did "China and India" stop using all the gas that was supposed to be the cause of the run up? Their are tankers full of gas sitting offshore, yet prices are rising for summer travel...
Lots of supply...
By steve @ 05/11/09 11:59:41 AMreport abuse
Oil prices are set elsewhere
In this age if the internet and with so many resources, how can people still be so ignorant? Only 15% of the world's oil comes from American oil companies, you know, those guys Congress drags in now and then to browbeat and explain their big profits. The rest of the oil, 85% comes from countries who really don't like us very much, and who only laugh at our plight. They set the price of oil, not the U.S. companies. The tail doesn't wag the dog.

So please drop the "oil tycoon" B.S., it makes you look dumber than Bill O'Reilly when talking about oil prices. Spend and hour or two and educate yourself. You will see that oil prices are set by supply and demand. World demand is on hold temporarily due to the economic troubles, but oil supplies are declining too. So for the time being there isn't much change. When the economies around the world resume growth, watch out! Oil prices are going back up and we could easily see $4-$5 gasoline by next Summer.
By Joe @ 05/11/09 10:52:02 AMreport abuse
Gas
Sorry that doesnt wash. See more Obama stickers on SUVs. Not very environmentally friendly.I drive a Sentra that gets 35 MPG and Would never vote for Democrats.
By cas @ 05/09/09 10:16:38 PMreport abuse
Gas Price
It is truly amazing how the price of gas fell all by itself before each election when that oil tycoon was in office. Then it fell again when the automakers couldn't unload their gas guzzlers. Now that they have run out of rednecks to buy monster trucks the price is going back up all by itself again. This proves we just can no longer rely on oil to power transportation.
By General Public @ 05/09/09 06:12:37 AMreport abuse

Oil prices

Everybody got his own point on the oil prices! However, what most people fail to see and understand is the big picture of the American economy;capitalism is dying and socialism is taking over!Prices are set by the big monopolies and competition is for left overs! The bottom line is that is more capitalism in China than US! That's reality!Supply and demand is just a myth because in actuality, prices are manipulated almost 100%.Look at what europeans did to deal with the oil crisis! They bought people's old cars to help them buy new, more fuel efficiet cars. They're doing it, we're just talking!However, the bottom line is that big oil companies ultimately dictate gas prices, and they gonna make their money regardless of supply and regardless of demand!

By Mario @ 05/13/09 10:11:34 PMreport abuse

a hidden price setter

Take a look at the IMF if you want to know who really sets oil prices, (and by extension gasoline prices). Supply and demand plays a secondary, local role, but the IMF dictates what the Saudis and some others will charge for a barrel of oil.

By _aleph_ @ 05/11/09 04:57:19 PMreport abuse

oil

China will make more cars in 2009 than the U.S. Google the story. There are other factors beyond the 800 pound gorilla of the demand in China and India's fast growing economies. The fall in the value of the dollar due to overspending is another strong contributor.

By David Kerr @ 05/11/09 02:00:47 PMreport abuse

Oil

There is at least a small chance that Israel will bomb the Iranian nuclear sites. They ran a dress rehearsal last June (they went over the med, not over Iran). Gas could easily go to $5 for a few months

By David Kerr @ 05/11/09 01:56:19 PMreport abuse

More baloney from Steve

Yes, Steve China and India are using less oil. After the Olympics last Summer Chinese oil use dropped 10% and now that their economy is in the tank, demand has fallen even further. The same is true for India. Add to that the fact that countries in the Middle East desperately need cash to pay their debts and subsidize their faltering economies and we have a situation where they are pumping like crazy which drives down prices. There is too much supply for the given demand and the price of oil fell.

Gasoline prices are not the same as oil prices. Since we can't build refineries in the U.S. anymore due to environmental rules, we have to import a big portion of our refined products like gasoline. The states all mandate special, and often different mixtures of gasoline and that makes it more expensive - again because of supply and demand. Just because you have a tanker full of crude oil sitting somewhere doesn't mean your local gas station can get the special blend of gasoline mandated by the EPA. When that blend is in short supply, the price goes up.

By Joe @ 05/11/09 01:42:48 PMreport abuse

oil prices

Do you REALLY believe oil prices are a product of supply and demand? There is absolutely no connection. Prices are manipulated...and always have been. What changed from last year? Did "China and India" stop using all the gas that was supposed to be the cause of the run up? Their are tankers full of gas sitting offshore, yet prices are rising for summer travel...
Lots of supply...

By steve @ 05/11/09 11:59:41 AMreport abuse

Oil prices are set elsewhere

In this age if the internet and with so many resources, how can people still be so ignorant? Only 15% of the world's oil comes from American oil companies, you know, those guys Congress drags in now and then to browbeat and explain their big profits. The rest of the oil, 85% comes from countries who really don't like us very much, and who only laugh at our plight. They set the price of oil, not the U.S. companies. The tail doesn't wag the dog.

So please drop the "oil tycoon" B.S., it makes you look dumber than Bill O'Reilly when talking about oil prices. Spend and hour or two and educate yourself. You will see that oil prices are set by supply and demand. World demand is on hold temporarily due to the economic troubles, but oil supplies are declining too. So for the time being there isn't much change. When the economies around the world resume growth, watch out! Oil prices are going back up and we could easily see $4-$5 gasoline by next Summer.

By Joe @ 05/11/09 10:52:02 AMreport abuse

Gas

Sorry that doesnt wash. See more Obama stickers on SUVs. Not very environmentally friendly.I drive a Sentra that gets 35 MPG and Would never vote for Democrats.

By cas @ 05/09/09 10:16:38 PMreport abuse

Gas Price

It is truly amazing how the price of gas fell all by itself before each election when that oil tycoon was in office. Then it fell again when the automakers couldn't unload their gas guzzlers. Now that they have run out of rednecks to buy monster trucks the price is going back up all by itself again. This proves we just can no longer rely on oil to power transportation.

By General Public @ 05/09/09 06:12:37 AMreport abuse

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May 08, 2009 -- What will you be paying for gasoline this summer?

What others are saying