8 ordspråk av Jim Rink

Jim Rink

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Gas prices could easily hit $3 per gallon this summer. That threshold was already reached last year.

I don't think this is a supply and demand issue at all. There is plenty of oil out there. I think the biggest thing going on is there is massive speculation on the markets where hedge funds and other groups are buying oil futures ahead of the traditional run-up in prices to guarantee a return on their investment.

In general, $2 a gallon is a thing of the past. We have increasing global demand, decreasing availability of oil and higher costs associated with extracting it and refining it, so the days of cheap gas have probably been over for two or three years.

In Michigan, we only have one refinery. The other two factors influencing our prices are that there is a lot of speculation taking place on the commodities market and that there are a number of refineries that are having to shut down temporarily to switch their production to the summer-grade gasoline blends.

In the summer especially, people will tend to travel regardless.

Right now their economy is growing at a rapid pace, and they need to be supplied with oil.

The market is very jittery with what's happening in Iran, Iraq and Nigeria. We could actually peak in May, the start of the summer driving season, as opposed to the traditional peak period in July.

We think that pricing pressures should ease and prices should come down or moderate by late May or early June barring any major catastrophe. I would say $3 a gallon is always within reach.

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