Friday, May 29, 2009

Oil and gasoline prices continue their upward climb.

In the past six months, they've doubled -- largely based on optimism that a stronger economy will drive demand higher.

Wholesale gasoline prices normally rise during this time of the year. They're now up by 140% since Christmas Eve. Retail prices have reached a national average of about $2.47 a gallon.

The chief oil analyst at Oil Price Information service, Tom Kloza, says the run-up in gasoline prices shouldn't last. But then again, he says he never would have predicted prices would be so high by now.

Benchmark crude for July delivery has been higher again today in New York -- reaching nearly $66.50 a barrel.

After reaching a record $147 a barrel last July, oil plunged to $32.40 in December.