Gas prices go up around the U.S.

July 16, 2013 12:00:00 AM PDT
Gas prices are up in Fresno. Drivers are paying an average $3.87 for a gallon of regular unleaded.

So is it supply and demand? Is it the crisis in Egypt?

The temperature is soaring and so are gas prices. The average cost of gas in the U.S is $3.64 a gallon. That is up 15 cents over the last week and 20 cents since last year.

Drivers in Chicago and Los Angeles are seeing more than $4 a gallon. Two key things may be causing this summer spike.

First, unrest in the Middle East that is creating instability in the global oil markets. "Anytime Egypt gets in trouble, knee jerk reaction is go out and buy some crude oil. And the price of crude has shot up, finally kicking in at the pump," said Jeff Macke from Yahoo Finance.

Second, it is summer vacation season. As more Americans hit the roads for some fun in the sun the demand for gas increases. But just as trends show during similar periods of higher prices drivers seem to be taking it in stride.

Analysts are already looking down the road to get a sense of whether a summer spike could hurt the economy.

"Economists are telling me in two to three months, that's when the sticker shock will really hit consumers. Come September, October, right when the critical holiday shopping season is beginning, that's when consumers will start to pull back on their spending," said Betty Liu a Bloomberg abc News contributor and Bloomberg Anchor.

Drivers beware, experts warn that prices could continue to go up but it may be just a brief spike.


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