Gasoline prices, which for months lagged the big run-up in the price of oil, are suddenly rising quickly, with some experts fearing they could hit $4 a gallon by spring. Diesel is hitting new records daily and oil closed at an all-time high on Tuesday of $100.88 a barrel.
The increases could not come at a worse time for the economy.
Understatement. Frame that one and hang it on your wall.
Oil prices are unlikely to drop any time soon, analysts said. Barclays Capital recently raised its long-term prediction, saying prices could reach $137 a barrel in 2015, up from a previous target of $93 a barrel.
Sorry, that wasn't me you heard snorting. $137 in 2015? That's 7 years from now! I might believe that if there was a slight decrease in US consumption coupled with peace in the Middle East. And a smaller increase in consumption in China and India. Like that's an option.
I'll be surprised if we aren't seeing $137 a barrel before the next president has had time to fumigate the Oval Office.
I suppose Exxon/Mobile and others have decided they want a bigger piece of that economic stimulus check. They'll be damned if Wal-Mart is going to take it all.