Expect $3 a Gallon Gas in NJ This Summer
New Iran sanctions may further aggravate already-climbing Jersey gas prices this driving season. But there are other factors at play in the increases.
Analyst Tom Kloza, with the Oil Price Information Service, says pump prices will make a "rendezvous" with $3 a gallon.
"Some of it has to do with Iran, but most of it has to do with the theme that we have been looking for in the middle third of this year, which is, global demand is going to exceed global supply," he said.
"I think that the average family can figure that they are going to spend about $200 more this driving season than they did last year. I do think that we will see a lot of stations price right around $3," he said.
"The next few months look a little bit stormy. They look stormy for crude, stormy for gasoline, and also for diesel and jet fuel. I mean, it is just a more expensive bag of oil."
Kloza says the United States is producing twice as much crude as in 2012, but we are exporting a lot of it. As for the future of gas prices, "I think that they will peak and then they will sort of hang on and then come off as we get into the fall."
AAA reports New Jersey's average late last week was in the low $2.90s.