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Gas pushing $3.00 per gallon— what can be expected this winter?
By Kris Kolk
November 14, 2007
As gasoline prices creep higher at the pump, currently almost $3.00 per gallon, many wonder just how expensive gas will get this winter.
Eric Wittenauer, energy futures analyst at A.G. Edwards & Sons in St. Louis, gave sccworlds.com his prediction. He said that gasoline prices are trying to catch up with price increases in crude oil. He stated that gasoline prices have not raised commensurately, and consumers have, so far, been shielded to this.
How expensive will gas prices get this winter? The steady climb of gasoline prices makes consumers wonder when the hike will end. Wittenauer said that he does not foresee gasoline prices reaching four dollars per gallon anytime soon. He stated that he believes prices will stay below $3.25 per gallon this winter.
Gasoline prices affect more than just the cost of commuting to work. They also affect consumers’ buying power. Without as much money to spend on necessities, people won’t be too anxious to splurge on a home, car, go to a tanning spa, get the dog groomed or pay five dollars for a cup of coffee.
The economy teeters in anticipation of each price jump. As the holidays approach, once again the question is being asked, “Will consumers be confident and spend enough to make retailers grin?” We’ll only know in 2008.
In addition to gasoline price hikes, it will also cost more this year to stay warm, which has some people thinking about alternative energy options, such as solar and wind power. When asked about investment trends in unconventional energy sources, Wittenauer replied, “High prices support finding alternative sources.” He said that we are in the early stages of a secular shift, when investments are made in response to long-term behavior changes.
Tell us what you think about this topic in the forums. Or e-mail us at contact@sccworlds.com. We want to know your opinion!
Copyright 2007 Neighbors About Town
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As crude oil prices have risen, fuel prices in the area have climbed up near the $3.00 mark again. |