WHERE WILL GAS PRICES GO?

There is quite a bit of debate over the direction of gas prices as we prepare to enter the high-demand spring season. Some analysts believe gas prices may go over $4.00 per gallon, but others cite huge inventories as a reason for their belief that gas prices will fall more in line with the Energy Department's prediction of $3.40.

From AP via BusinessWeek:

Gas prices jumped Friday to their highest level since June, a possible preview of what many analysts believe will be a record spike in pump prices this spring.

But the current price surge could be short-lived. While gasoline has risen sharply in recent days in response to oil's dramatic climb to a new record above $101 a barrel, gas supplies have quietly grown to their highest level in 14 years.

Many analysts believe gas prices will rise this spring to new records near $3.75 or $4 a gallon. But not everyone agrees.

[President of energy consultancy Ritterbusch and Associates, Jim] Ritterbusch, for example, thinks the high level of supplies, and an eventual decline in oil prices, will pull pump prices down. He doubts prices will rise as high as $3.75 without a major overseas supply disruption or domestic refinery outage.