Prices At Pump May Reach $3
By George Anderson
Prices at the pump may be going up to $3 per gallon this summer as the market forces of increased demand spurred by a growing economy come face-to-face with a reduction in supply from oil producing nations.
The Organization of Petroleum Exporting Countries (OPEC) reached agreement last week to reduce the official target output, excluding Iraq, by 1 million barrels a day.
Geoff Sundstrom, a spokesperson for AAA, said OPEC’s decision “is one more reason on an already lengthy list of why U.S. consumers are likely to pay the highest gasoline prices on record this year.”
Kevin Kerr, a senior trading director at KWEST Trading International, said he is looking for gas prices to go above $2 a gallon. According to Mr. Kerr, the combination of forces, “the economic recovery in the United States and other parts of the world … and the draw on existing energy supplies could be disastrous.”
John Person, head financial analyst at Infinity Brokerage Services can see gasoline prices up to $3 in some states.
Moderator’s Comment: What will be the impact of higher gas prices on the economic recovery?
We all know what happens when a car runs out of gas. The same thing happens to the economy. – George
Anderson – Moderator