Gas Prices: Boy, was I wrong….

Others | December 7th, 2008 by 7
cheap20gas Gas Prices: Boy, was I wrong....

  Back in May, I wrote an article on the continuously rising gas prices and future predictions. At the time, the oil set a new …

 cheap20gas 498x373 Gas Prices: Boy, was I wrong....

Back in May, I wrote an article on the continuously rising gas prices and future predictions. At the time, the oil set a new all-time record at $134/barrel and the specialists were forecasting at least $200 by the end of this year.

A premium gallon of gasoline was selling for $4.65 at gas stations near Downtown Chicago and a few weeks later, even higher, I remember paying very close to $5/gallon. Despite the optimistic statements of other specialists that the gas prices will fall after the summer rush, I was one of the people believing that we will be paying way over $5/gallon by the end of this year. 

I ran a poll on here and many of you have agreed with me, 33% said “Way above $5/gallon and even closer to $6″, others were a little more optimistic, 30% said “Under $5″ and only 10% of you believed the gas price will stay the same.

Fast forwarding seven months and today we have some of the lowest gas prices we have seen in the last seven years, with a national average of $1.77/gallon, compared to $2.37 a month ago and $3.03 a year ago.

Our friends at Carscoop, citing Merrill Lynch Commodity Strategist Francisco Blanch and Gulf Oil CEO Joe Petrowski, say that crude oil prices may very well fall below $25 a barrel by early next year.

“A temporary drop below $25 a barrel is possible if the global recession extends to China and significant non-OPEC cuts are required,” Blanch said.

The result: gas prices of less than $1 a gallon.

Are they a little too optimistic? I am not sure, but this time I’m going to sit it out and not adventure in predicting anything, I learned from the recent past. But I will let you one more time vote in a short poll.

P.S Feel free to leave comments with your predictions.

[poll id=”32″]

[Source: Carscoop ]

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