Despite summer coming to a close and calmer weather in the Gulf Coast, gas prices spiked around the Labor Day holiday, mostly due to Hurricane Isaac.
Production was shut down at many oil facilities in the gulf because of the storm. However, that weather continues to play a role in this week's continued high prices. Economics professor David McClough says 25% of production in the United States comes out of the gulf region, and a scheduled shutdown is also intensifying the effects of Isaac on gas prices.
McClough reminds us that four dollar gas prices were predicted for this summer back in January. Predicting what the prices will be this winter is difficult. Historically, gas prices drop in the winter. However, unrest in the middle east, more hurricanes, and other factors could cause additional spikes.