With oil topping $90 U.S. a barrel, average gasoline prices surpassed the $3 U.S. mark this week for the first time in more than two years.
According to the American Automobile Association (AAA), gas prices have climbed more than 4% from last month and are 16% higher than a year ago. Prices have been climbing steadily since bottoming out at $1.616 U.S. in December 2008.
However, the average price is down $1.101 U.S., or 26.7%, from the all-time high of $4.114 U.S. in July 2008.
That record could get shattered in 2011. Fox Business Analyst Eric Bolling, a former oil trader, is predicting oil will top $125 U.S. a barrel next year putting gasoline prices over $4 U.S. a gallon once again.
The rise in gas prices has reflected the rise in crude oil, which passed the $90 U.S. a barrel mark this week. Analysts say the spike in crude has been helped along by a weak dollar, and the Fed's quantitative easing program.
AAA says the higher gas prices aren't going to keep motorists off the road this holiday season. An estimated 86 million people will travel by car to their holiday destinations -- a 3.2% increase over last year.
As for a sampling of gas prices around the country, the highest were in Hawaii where a gallon of gas cost $3.636 U.S. Californians pay $3.275 U.S., followed by New York follows, with an average gallon costing $3.262 U.S. In all, 26 states and the District of Columbia are already paying more than $3 U.S. a gallon.
But some states pay far less. Residents of Colorado enjoy the lowest price -- $2.755 U.S. per gallon.
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