Impact U.S. debt default, gas prices prediction could top $5 per gallon 2011

Impact U.S. debt default, gas prices prediction could top $5 per gallon 2011 : One of the many possible negative outcomes of Congress failing to reach a deal on raising the debt ceiling before Aug. 2 is gas prices could top $5 per gallon this year. A report in the International Business Times says that as oil prices push higher there is a risk of several scenarios that could prompt gas prices in the United States to top $5 per gallon.

“A U.S. government default that causes institutional investors to dump U.S. government bonds, triggering a plunge in the dollar, pushing up oil's price,” is one of the scenarios listed by a column in the paper. Petroleum costs are pushing near the $120 per barrel mark for Brent Crude, and West Texas Intermediate Crude is pushing close to $100 per barrel, according to the report.

Sustained unrest in oil producing nations in the Middle East or Africa also could lead to $5 gas, along with increased oil demand from emerging nations that could lead to an energy crisis.

Economists say high oil and gas prices impact more than just prices at the pump, and can hit everything from transportation to exports and even consumer spending. The Dayton region has long been a hub for trucking companies because of its central Midwest location and the intersection of Interstates 75 and 70. Con-Way Inc.bizWatch Con-Way Inc. Latest from The Business Journals Trucker heads to national competitionYRC Worldwide lands 0 million loanReport urges investors to avoid YRC Worldwide Follow this company has large operations in Dayton and Arkansas Best Corp.bizWatch Arkansas Best Corp. Latest from The Business Journals Gas prices continue climb over weekendYRC Worldwide lands 0 million loanYRC Worldwide lands 0 million loan Follow this company has 630 workers in Dayton.

Even larger shipping firms such as United Parcel ServicebizWatch United Parcel Service Latest from The Business Journals YRC Worldwide names Welch as CEO, finishes restructuringSanMar wants giant MN warehouseSecond-quarter profits expected to be strong Follow this company and FedEx Corp.bizWatch FedEx Corp.

Latest from The Business Journals Report: FedEx makes list of top 100 companies for MBA studentsTake this entrepreneur sniff testHire and hire: Steady growth foreshadows Honda Aircraft’s plans Follow this company , both of which have operations in the Dayton region, operate thousands of delivery trucks and could be hit, along with such other companies as pizza restaurants that rely on deliveries, such as Domino’s Pizza.

Earlier this year, about 72 percent of people in a recent Rasmussen Reports national telephone survey said they fear gas will reach $5 per regular gallon this year.

The national average for gas prices is $3.69 on Saturday, according to the AAA Fuel Gauge Report. However, several states currently have average prices of more than $4 per gallon.

In Dayton, the average price at the pump is $3.67, up $1 from this time last year. The higher gas prices has led to more profit and higher stock prices for some of the oil companies