The Gas Crisis -
Gas prices are at an all time high and more and more people have to work overtime just to pay the bills. Despite recently falling prices of crude oil, stations still manage to keep prices well above three dollars a gallon. Since the end of March, prices of gasoline have risen more than 20%. Now that these prices are rising, more and more car companies are struggling to make vehicles that do not require gasoline to run. But the question is; will they be ready before the whole country goes bankrupt? It usually takes many weeks for changes in our future prices to filter down to the retail level, but that isn’t necessarily the case when the prices are rising rather than falling. The prices at the pumps have been hitting new records each week. Antoine Halff, an analyst at Newedge, a brokerage firm based in Paris, says that "The price gains at the pump sometimes are a bit stickier than the price gains in the futures market. A retreat in futures prices may not immediately be felt at the pump.” Mr. Schork, president of the oil-and-gas research firm Schork Group, believes that gas prices will eventually fall sometime soon. Based on that, he says, the current price of oil translates into $3.91-a-gallon gasoline, only a few cents lower than the national average. “If the price of gas is going to fall by 50 cents a gallon, crude will have to drop to about $100 a barrel. Oil at $120 isn't going to get it done," he claims. Even though crude oil prices have rose up 80% from last year, studies show that gas prices are only up 25% in the same amount of time. The good news for drivers is, from the looks of it, gas prices won’t be rising as fast as they have been in the past weeks.
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