WASHINGTON --- Oil analyst John Kilduff of Fimat USA in New York predicted a “painful run-up” in gasoline prices as summer approaches, with oil prices climbing as high as $80 a barrel by the end of June, the Associated Press reported. Yesterday, crude for June delivery cost $74 a barrel. Consumers may be responding to the higher prices. An Energy Department report showed that average daily gasoline demand since the beginning of the year is up 0.9 percent, compared to an increase of 1.4 percent during the same period last year. Analysts told the AP that the market psychology would stay bullish until demand falls significantly or until there’s a resolution to a variety of geopolitical concerns – particularly those involving Nigeria and Iran.

Originally posted on Fleet Financials