Colorado motorists are enjoying some relief – at least temporarily – from record fuel costs.
Prices in several Colorado cities are down 4 cents to 7 cents a gallon from highs reached in mid-April.
But the outlook heading into peak summer months is for tight supplies and strong demand that could push prices back up from the current statewide average of $2.25 a gallon for self-service regular.
“I see it as fairly steady in the $2.15 to $2.25 range till around Memorial Day, and then we could see prices sharply higher,” said Bryant Gimlin, an oil trader and analyst with Fort Lupton-based petroleum wholesaler Gray Oil Co.
Gasoline prices are still a relative bargain if inflation is considered. The national average of $1.42 a gallon in March 1981 would be $3.08 in today’s dollars.
Crude oil for June delivery jumped $1.19 Friday to settle at $55.39 a barrel on the New York Mercantile Exchange.
Recent record prices for crude oil and gasoline have occurred despite relatively few supply disruptions, Gimlin noted.
If supplies are disrupted by terrorist acts, pipeline problems or refinery shutdowns, prices could soar, he said.
Demand for petroleum is growing in the U.S. and rising even faster in China and India, taxing world supplies and forcing gasoline prices higher.
“You should keep your checkbooks handy,” Gimlin said, “because you’re going to need them when you fill up.”
Staff writer Steve Raabe can be reached at 303-820-1948 or sraabe@denverpost.com.
