Bursting The Gas Bubble…
As crude oil prices rise faster than the speculators can count their windfall profits, there’s talk of gas hitting 5 bucks a gallon before the end of the month.
And with the price of gasoline topping out at $4.60 cents a gallon in parts of California—we’re not too far away from that reality.
As our Congress continues to do nothing about the situation—we all have watch helplessly as fuel prices adversely affect everything in our lives.
But—there are signs that the inflated gas prices may not stay that way for much longer.
More and more analysts believe that these high oil prices are a “bubble” much like the housing bubble that inflated the price of homes a while back…
And like all bubbles—it will eventually have to burst.
Oil industry analyst Stephen Schork believes the bubble will burst perhaps by late summer because demand for gas is dropping as consumers cut back. That indicates to him the price rise is artificial, caused by speculators who are driving up oil prices.
His detailed explanation, along with more on the “bubble” can be found here.
While we’re waiting for the bubble to burst—here’s a look at how the gas situation was being viewed back in late 2004, early 2005 when prices first began cresting at about 2 bucks a gallon.
—Steve
Link to the video and the story Steve covered today on NBC-17
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