Gas prices predicted to be flat until the new year

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Motorists can expect to pay similar prices at the gas pump up until the new year says AAA in a new release.

According to AAA, gas prices are showing minimal movement in December and it is likely that prices will stay relatively flat until 2013 due to bearish and bullish pressures affecting oil prices.

"Although gas prices are forecast to remain relatively stable throughout the month, if a plan is announced to resolve the nation's debt issues, we could see gas prices inch back up," said AAA spokeswoman Jessica Brady in the release. "Gas prices are still about 10 cents higher than year-ago levels."

History has shown once December 31 arrives, the market tends to rally on economic optimism for the New Year, causing both oil and gas prices to increase at the start of January according to AAA.

(Gas prices courtesy of AAA)