Analysts: $3 gasoline unlikely in summer

Elementary school principal Randy Busscher of Holland, Mich. is braced for gasoline prices of $3 a gallon or more by summer break. Analysts say Busscher and other U.S. motorists may be more worried than necessary, however. Absent a major Gulf Coast hurricane, unexpected international strife or a wave of refinery woes, average U.S. gasoline prices are not expected to rise to the $3-a-gallon psychological threshold this summer


The stock prices of some restaurant chains, including Applebee’s International Inc., Darden Restaurants Inc. and Wendy’s International Inc. dipped in recent weeks as gasoline prices rose. The Dow Jones Index for restaurants and bars is down more than 5 percent for the month, compared with a 4.7 percent decline for the benchmark Standard & Poor’s 500 index.

Energy analysts say U.S. gasoline supplies should be ample enough this summer to keep prices relatively stable. “We don’t think that oil prices are going to be a drag on the economy this summer,” said Global Insight energy analyst Kevin Lindemer.

AP