Gas prices may get close to $5 in some spots

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http://money.cnn.com/2012/01/16/markets/gas_prices/index.htm?iid=HP_LN

NEW YORK (CNNMoney) -- The new year has greeted Americans with the highest January gas prices ever, and some analysts say prices could get close to $5 a gallon in some areas during the warm-weather driving season.

The average price for a gallon of regular unleaded gasoline in the United States on Monday was $3.39, according to motorist group AAA. That's nearly 30 cents higher than a year ago.

The national average reached a peak of $4.114 in July 2008.

Experts say there are a variety of factors placing upward pressure on prices at the pump. For one thing, the U.S. economy appears to be in a modest recovery, heralding a likely uptick in gasoline demand.

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1. What a shame

Although U.S. demand is still lukewarm, American refineries are increasingly exporting gasoline abroad, where strong demand is keeping prices high, said Kyle Cooper, director of research at IAF Advisors.