WTI crude rose just over 4% in the first quarter to almost $103.
The effects on the price of gasoline were evident as the average price of a gallon of regular nationwide was flat for the second day at $3.925. But the action has been relentlessly higher for the last two months. Gas prices for regular are up from $3.738 a month ago and $3.619 a year ago.
Many investment banks and oil analysts still believe that WTI may well reach $125 or better if the supply interruption from Iran cannot be balanced by new shipments from Saudi Arabia. The matter is made more complex by the belief that the Saudis could actually cut production if the US, UK, and France simultaneously releases crude from their strategic oil reserves. This may drive the price of oil lower than the Saudis would like, at least temporarily.
When the US and allies release oil reserves in June 2011, prices went down for four months, but quickly recover and the economy begun to turn up.
Douglas A. McIntyre