Tuesday, May 13, 2008

You Think it is Bad Now...

The New York Times reports that "Oil prices have nearly doubled in a year," and furthermore, "As demand continues to outpace the growth in oil supplies, analysts expect little relief in prices. A shortfall in supplies over the next two years will probably send oil to $150 to $200 a barrel, Goldman Sachs said in a new report.

Analysts’ forecasts for the price of gasoline over the next few years run as high as $7 a gallon."

This sounds pretty ominous. I am praying that they are overestimating. But, I know in my heart analysts, economists, and reporters typically underestimate these numbers. One can only hope that this time we experience the exception rather than the rule.

However, evidence for such positivity is scarce. For according to the above quoted NY Times article published just six days ago, "
the government said it expected gasoline prices to peak at a national average of $3.73 a gallon in June, just as the summer driving season kicks off." And yet, we're barely half way through May and we've already hit that mark.

The Times also reports that "Some private analysts have gone beyond the Energy Department’s forecasts, predicting that gasoline will surpass $4 a gallon this summer." But at the rate we're currently going, I think we're primed to be there before summer even begins (June 21st)!

I think I have chosen the most expensive summer to travel across America...smart.

Read the NY Times article

See the AAA's national gas estimates

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