The Drudge Report is cheekily labeling an article about the outrageous gas prices and gas shortage in Southern California the “October Surprise.” While it’s unlikely even $4-$5 (and up) a gallon gas prices will turn Californians into Romney fans, CNBC is reporting that gas prices are likely to keep rising in October:
“It will only take another refinery issue and a bit more of geopolitical noise to have the first U.S. election at a US average gasoline price of $4 a gallon,” says energy analyst Olivier Jakob of Petromatrix
Also contributing to the problem in California were issues at different refineries.
In general, however, CNBC cautions that the prices are easily affected:
“Gasoline futures prices dropped 30 cents after the expiration of the previous month’s contract, reflecting the seasonal shift among many refiners from summer-grade gasoline to a cheaper winter-blend.On Wednesday morning, the EIA reported a sharp drop in gasoline demand versus a year ago — leading futures to fall to the low of the week. But prices quickly recovered after the fire at the Exxon Baytown refinery.”