Will Gas Prices Reach $4 a Gallon This Summer?
Thursday March 13, 2008
Weekly Gas Prices / EIA
The EIA's Short-term Outlook forecasts average gas prices to peak near $3.50 per gallon in May and June. This is based on an average oil price forecast of $97 per barrel. Each $1 increase in oil prices translates to 2.4 cents in gasoline prices. If oil continues to break price records, this could cause some gas stations in some areas on some days to charge more than $4 a gallon. (Source: Bloomberg, Oil Rises Above $110 to Record, March 12, 2008)
What It Means to You
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Comments
I saw a news article today that it is already at $4 in at least one state. I skimmed it, but I think it was Hawaii.
Hi Denise,
Thanks for the update.
Kimberly
We need a gasoline lottery in every state..or a no drive day a week boycott
Gas and oil prices are inflated thanks to investors who are afraid to put their money into either the stock market or real estate until the subprime mortgage crisis unwinds.
My hunch is that, once that happens, probably after this summer, money will go back into real estate and the stock market and out of oil futures, and gasoline prices will return to reasonable levels.
Kimberly