I filled our Suburban up for about $38 yesterday. Even as I did the happy dance, I know it can’t last.
I have little more than intuition to peg this on, but mark my words – these gas prices are not here to stay. They may last a week or a month, and they may even go a little bit lower, but they’re getting ready to skyrocket back where they were this summer or higher.
Helping form my conviction on this:
1) People have already assured Big Oil that we will pay $4+/gallon. Yes, we might drive a little less, but not half as much as we do at $2. They can sell less and make more at $4/gallon.
2) Very few people want to hear politicians talk about alternative energy. This dip in gas prices reassures people that we don’t really need to worry about using anything other than oil, further diminishing their interest. The only thing we are burning faster than oil is time….time that should be spent on research but won’t be, because gas is cheap again.
3) Markets are driven by speculation, not production. Look at the recent stock market activity. It swings wildly day to day – is that because the stocks intrinsic value fluctuates that fast? No it’s because the number of people who bet that someone else is dumber than they are is skyrocketing. Oil will fluctuate just as quickly.
Fill your tanks, friends. And your barrels and your pitchers and your swimming pools. $4 gas will be back sooner than you think.
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