Consumers Will See $3 Gas Again Thanks to $100 Oil

The world oil markets are seeing prices on crude oil top $90 per barrel – that’s a record. Unfortunately, it doesn’t seem to be slowing down. Most analysts and experts agree that prices will cruise past $100 by the end of the year. Of course, it follows that if the price of crude is flying over $100, people will see prices over $3 and maybe even $4. No thanks.

“Three dollar gasoline in this market is unavoidable,” said Stephen Schork, publisher of the industry newsletter the Schork Report. “At this rate, we’re going to see $4 a gallon.”*

Is there cause for alarm? On one hand, of course we do. Nobody wants to pay $4 for a gallon of gas. If you’ve got one of those big SUVs, you could easily put $100 worth of gas in your vehicle in one trip to the pump. Can you imagine it – $400 to $500 per month in gasoline. That could really put a dent in your leisure budget.

On the other hand, there may be hope. Certain analysts disagree that prices won’t jump that much by the holidays. They look at flat demand for gasoline as a sign that oil refiners will be able to keep up with demand through the holidays. But if crude prices don’t fall, it won’t matter. The holidays won’t see the spike in price, but we’ll have it by the spring.

Source: cnn.com