The leaves are changing, but the high gas prices aren't. As of this week, the average gas price in Texas remains 95 cents higher than a year ago, even as we enter the autumn season which typically sees pump prices decline. "Normally we would have seen gasoline prices go down now, but they've been stubbornly high," says Phil Flynn, oil market analyst with the Price Futures Group. "Prices are still holding near summertime driving season levels."
The cooler weather is unlikely to bring price relief this year. In fact, it's actually the opposite. A new analysis from Bank of America predicts crude oil prices could hit $100 a barrel this winter, as demand increases due to cold weather. Flynn believes that trend has already started. "If you look at the price of natural gas, it's up over 126 percent since the beginning of the year, and the price of oil is up close to 90 percent," he tells KTRH. "That means if we get a cold winter, we have the possibility of not only sharply higher prices, but potential shortages of supply."
What it ultimately means for consumers is higher gas prices and higher home heating costs this winter. Flynn predicts that scenario is unlikely to change anytime soon. "We have an administration that is anti-fossil fuels and pro-renewable fuels," he says. "So we haven't seen the types of investments in oil and gas, and that's left us short on supply, and that's why prices are going up."