If experts in the oil and gas and financial services industries are on target, Americans should expect to see fuel costs rise during the remainder of 2009. In particular, they should expect to see gas prices approaching $5 per gallon by 2010.That's the news I have to report following an American Petroleum Institute conference call this morning which included a variety of bloggers and journalists.
For all of the sordid details, click here.
While the Department of Energy has a bit of a habit of being conservative I think, as does the EIA, the $5 mark is preposterous. Look at the Energy Information Associations forecast to 2010 at http://www.regular87.com/ under the EIA Forecast tab. They show the average price of gasoline topping out at the $2.668 mark, a far cry from $5. I respect the and I didnt get in on the conference call but I don't believe we will see $5 at the retail level unless there is major disruption in supply.
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