Gas prices expected to drop 50 cents by summerAP posted: 5:19 PM 05/07/11
Comments Text Size A A ANEW YORK -Some relief from suffocating gas prices will likely arrive just in time for summer vacation. Expect a drop of nearly 50 cents as early as June, analysts say.
After rocketing up 91 cents since January, including 44 straight days of increases, the national average last week stopped just shy of $4 a gallon and has retreated to under $3.98. A steady decline is expected to follow.
It might not be enough to evoke cheers from people who recall gas stations charging less than $3 a gallon last year. But it would still ease the burden on drivers. And it might help lift consumer spending, which powers about 70 percent of the economy. A 50-cent drop in prices would save U.S. drivers about $189 million a day.
Oil Prices Will Top Highs After Correction: Goldman
Goldman Sachs, which in April predicted this week's major correction in oil prices, said on Friday oil could surpass recent highs by 2012 due to supply tightness.
News of Goldman's [GS 150.10 -0.31 (-0.21%)] mid-term outlook on Friday helped oil prices pare some earlier losses and move higher, though the unexpected jump in US payrolls for April also helped.
"It is important to emphasize that even as oil prices are pulling back from their recent highs, we expect them to return to or surpass the recent highs by next year," Goldman Sachs' analysts said in a research note.
"We continue to believe that the oil supply-demand fundamentals will tighten further over the course of this year, and likely reach critically tight levels by early next year should Libyan oil supplies remain off the market," it said.
Gas Prices Climbing Toward $5 Per Gallon
April 11, 2011 5:53 AM
UPDATED 04/11/11 10:57 a.m.
CHICAGO (CBS) – At one time, $5 per gallon gas seemed like a far-fetched idea, but that is no longer the case.
As of Monday, the average price for a gallon of regular unleaded gasoline in the Chicago area is $4.11, compared with $3.71 a month ago, and about $3.10 a gallon at this time a year ago.
Some experts say $5 per gallon gas is possible by Memorial Day-or sometime in summer. Others caution that reaching that mark is unlikely over the next six weeks. In Chicago, the prices keep rising to near-record levels–with no relief in sight.
Kliphnote: Do any of these people know what the hell their talking about?
The same "experts" are predicting the stock market.May as well use a crystal ball or a fortune teller.