$3 per gallon gasoline could be headed to a pump near you.

[CaptinCrunch]

The expanding U.S. economy, limited supplies of certain blends and unexpected output cuts by major producing nations will likely propel U.S. retail prices well past their record high, industry experts said.

The Organization of Petroleum Exporting Countries, which supplies 40 percent of the world's oil, agreed Feb. 10 to rein in an estimated 1.5 million barrels of daily overproduction. Members also voted to cut their official output target by 1 million barrels to 23.5 million barrels a day, excluding production from Iraq, starting April 1.

The cartel's action comes as the national retail price of gas is only 10 cents below the all-time average high of $1.73 a gallon reached last August.

"OPEC's decision ... is one more reason on an already lengthy list of why U.S. consumers are likely to pay the highest gasoline prices on record this year," AAA spokesman Geoff Sundstrom said.

Gas prices "will certainly breach" the $2 mark on the back of OPEC's announcement, said Kevin Kerr, a senior trading director at KWEST Trading International. "At the same time, the economic recovery in the United States and other parts of the world ... and the draw on existing energy supplies could be disastrous."

Since the oil market didn't anticipate OPEC's dramatic moves, "the shockwave will be felt all the way to the pumps," Kerr said.

A survey of the five market analysts found all agree that retail gas prices will, at the very least, hit a new record this year.

Indeed, if crude inventories don't increase, and if OPEC votes to cut another 5 percent from its output, unleaded gas prices could reach the "upper limits of $2.75 to $3 this summer," said John Person, head financial analyst at Infinity Brokerage Services.

http://aolpf5.marketwatch.com/news/story.asp?guid=%7B40A4FE60%2D9FE7%2D4C04%2DB5C7%2D22EEB3113ACB%7D&siteid=aolpf&dist=special

[TexasStooge]

NO WAY!!!!!

[Stephanie]

Absolutely ridiculous!

[Guest]

Oh, boys and girls, this is just totally unnecessary, raising prices like that! Usually it is just in time for the upcoming summer travel season. SOmeone is ripping us off, and that is plain not right!

[JCT777]

I'll bet if you told somebody back in the 60's that before 1980, we would see gas prices near $2 per gallon - a lot of people would not have believed you. Gas prices near $3 per gallon in the not-too-distant future would not surprise me, nor would I be happy about it.

[stormraiser]

While this is ridiculous, it is also not surprising.

We are up to about 1.85 here and it keeps going up. People can complain that we just went into Iraq for the oil, but I for one wish we had Then we wouldn't be at the mercy of OPEC and their greedy little selves.

[wx247]

$1.53 this morning. For someone like myself who commutes an hour one way...this is NOT a good thing.

[deb_in_nc]

The cheapest I've found around my house is $1.69
for regular.

[Josephine96]

Cheapest 1 I have found is about 1.67 or so.. Cheapest premium is around 1.90

[weatherlover427]

It's over $.200 at virtually every station I've seen here, even the cheap ones now ... Good thing I don't drive (and can't - no license/car/insurance).

[ColdFront77]

Oops, one of those annoying typos, Josh... I (we all) know you mean $2.00, not 20 cents.

Gas prices at the gas stations in my immediate area are running around $1.65.

[weatherlover427]

D'oh! Yep, definitely NOT 20 cents here. Didn't catch that one.

[StormCrazyIowan]

Wanna see how quick I move into town and learn to take a bus?

[Guest]

Gas on the east side of Houston is $1.58. Planning on taking a roadtrip to Colorado at the beginnig of summer - going to have to increase my budget to include the raise in prices. I honestly expect to see $2+ a gallon this summer.

Profits by the big oild companies are never enough..they keep wanting more and more...and OPEC is decreasing demand - so there it is suppy and demand and prices jump.

[j]

I Ride a motorcyle at least half the time, and smile everytime I get my $6-7 in gas.

I am paying $1.69 for premium as of this past Sunday.

[Guest]

The time to have a motorcycle and ride it is when gas prices are high. You definitely are ahead of the game J when you ride your motorcycle.