Arizona Discount Travel Blog

Fuel prices rising – I wasn’t off by far according to this forecast



By Dan Dorfman – New York Sun – April 28, 2008

Analysts predict that market factors with drive gas prices up to $7 to $10 a gallon … and most likely higher than that …

>>>>> For those not as familiar with the oil / Petrochem market as I am, I’ll explain this in easy-to-understand terms …

The prices are high due to the fact of the recession in the United States and the economic crisis which has touched several countries, a situation which has an effect on the devaluation of the dollar, and therefore each time the dollar falls one percent, the price of the barrel rises by $4, and of course vice versa.

If the dollar strengthens by 10 percent, it is probable that (oil) prices will fall by 40 percent … <<<<<

Get ready for another economic shock of major proportions — a virtual doubling of prices at the gas pump to as much as $10 a gallon.

That’s the message from a couple of analytical energy industry trackers, both of whom, based on the surging oil prices, see considerably more pain at the pump than most drivers realize.

An Arco gas station in San Mateo, Calif., has already raised its price to a sky-high $4.62.

These increases are taking place before the all-important summer driving season, signaling even higher prices ahead.

Translating this price into dollars and cents at the gas pump, one of our forecasters, the chairman of Houston-based Dune Energy, Alan Gaines, sees gas rising to $7-$8 a gallon.

The other, a commodities tracker at Weiss Research in Jupiter, Fla., Sean Brodrick, projects a range of $8 to $10 a gallon.

This would undoubtedly create considerable global economic distress

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April 28, 2008 - Posted by | Commentaries, In the news, Oil and Gas News

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