Quote:
Originally Posted by jeremyc74
My speculation on the situation:
The current price of oil represents a bubble on the verge of bursting. The decline of the $$$ has sent everyone running for a safe haven, and oil is what a lot of them picked. As soon as the Fed stops lowering interest rates and the dollar stabilizes for a few months, you'll see people jumping out of oil and the prices will come down.
Oil is certainly going to increase over the long haul, but the fundamentals just don't support the current price run-up that we've been seeing.
The US consumer is certaily feeling the pinch at the pumps and everyone involved knows that shutting down the US consumer isn't good for the world economy, and especially oil.
To sum up my position, I think over the next 6 months we'll see national average fuel prices pull back to around $3/gal and then follow a more subdued climb after that. Of course all that is assuming no major political or environmental events.
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I think Dodge/Chrysler/Jeep shares your outlook. It looks like they are betting on gas prices going back down to $2.99/gallon too.