Spring Fever Could Lead to Increase in Gas Demand

The national average price for a gallon of regular unleaded gasoline for Monday is the highest it's been since Sept. 11.

Apr 1, 2014 at 10:47AM

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The national average price for a gallon of regular unleaded gasoline for Monday is the highest it's been since Sept. 11. Demand may increase along with the price at the pump for April, though a short-term plateau may be within site, AAA said.

Michael Green, a spokesman for AAA, told Oilprice demand for gasoline is expected to increase as a long winter starts to ease across much of the country.

"Given how cold it had been earlier in the year, it would not be surprising to see pent-up demand result in significant gasoline consumption in the coming weeks," he said.

The U.S. Energy Information Administration said demand for gasoline for the week ending March 21 increased 5.7 percent from the previous week to 9 million barrels per day. With winter fading across much of the country, Green said demand should increase as the summer driving season starts to approach.

EIA said in its short-term market report U.S. gasoline consumption increased by 1.1 percent in 2013, the largest increase since 2006. For this year, EIA said consumption should remain relatively static, however, as drivers turn to more fuel-efficient vehicles.

Higher demand typically results in higher prices at the pump.  AAA reports a national average price for Monday at $3.56, the highest daily average since Sept. 11. The average price for a gallon of regular unleaded gasoline increased 49 out of 52 days for a total 29 cents per gallon. AAA said gasoline prices are up primarily because of seasonal refinery maintenance and the switch to the summer blend of gasoline, which is more expensive to produce.

Gasoline prices for March averaged $3.50 for a gallon of regular unleaded, 5 percent higher than in February. AAA spokesman Avery Ash said in the motor club's monthly report the national average could reach as high as $3.75 per gallon, though $3.65 for April is more likely.  The spring peak is within sight, he said, but prices may continue to climb through the month.  The average price for the last full week of March 2013 was $3.74 and $3.59 for the end of April.

Parts of California saw the highest national price for a gallon of regular unleaded with $4.12 per gallon. Great Falls, Mont., had the lowest average price of $3.18. For the year, EIA said it expects a national average of $3.45 for a gallon of regular unleaded and $3.37 in 2015.

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Written by Daniel J. Graeber at Oilprice.com.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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