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Over the long haul, higher crude prices do lead to higher gas prices. But the oil prices that make headlines are "spot" prices, referring to the price of the last barrel sold. Most oil is sold under long-term contracts, which tends to delay the impact of higher spot prices. That means gas prices still have room to grow...
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That means gas prices still have room to grow. And as with any commodity, the rules of supply and demand are in play. When demand outstrips the gasoline supply, as happened in the summer of 2004, the price goes up.
So how high can gas prices go? No one knows for sure, but some analysts say with continued concerns about refining capacities, prices are set to go even higher...
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