AMARILLO, TX -- As you pull up to the gas pumps these days, you'll notice that not only is gas 93 cents more per gallon than it was a year ago...it's now at an all time high... $3.84... for the national average.
So, we wanted to know just what is the driving force behind these record prices? Just what is the one thing that causes gas prices to jump? Most believe it's a combination of a number of things: political unrest overseas, our recovering but shaky economy, and speculators.
Just what are speculators?
According to Josh Wood of Wood Financial, "They are big entities making a long term bet on commodities, or some other investment. They're thinking up the long term price of oil is say, $150. I"m going to get in between $100 and $150 and they buy in now for future prices, and it tends to drive them up...now."
The national news is singling them out as part of the impetus behind the rising prices...trying to determine what we'll have to pay...and that pushes the prices even higher.
Wayne Hughes, vice president of PPROA, says "There is a standing offer, big bucks, to whoever comes up with a working model that predicts this...and people have tried, I"ve read up on it, and believe me they've tried, and there's just no predictable model."
Worldwide, producers are seeing huge profits as we enter record paying territory...and with the combination of factors that affect oil and gas prices, its seems everything's lined up to keep those prices climbing...and some "speculate" that 5-dollars a gallon is possible by the summer driving season.
"Chicken and the egg. If the economy is recovering, gas prices could actually stabilize, and the opposite is true as well. right now, I would argue, it's absolutely the obstacle," notes Wood.
"Volatile prices in the price of gasoline which apparently, is not going to stop anytime soon," adds Hughes.
