The Expected Trend For Gas Prices
On Friday, oil prices set a record high, because they were not adjusted for inflation. As a matter of fact, average gasoline prices at the pump have broken records for three consecutive weeks. But the Federal Reserve Chairman, Alan Greenspan, said Tuesday, that expected increases in oil inventories should lead to lower prices. Supposedly, the higher prices in gas have lead the demand for oil to slow down modestly. There has also been an increase in production, which should lead to larger inventories and, in turn, (what we all wish for), lower prices. By the barrel, Tuesday oil prices fell 1.7 % to $56.04. One minute we hear that prices are expected to reach around three dollars a gallon, the next we hear they will be going down. Who are we supposed to believe? I for one think I will go with what the FED Chairman says. Maybe it's just a hope, but I've always considered myself an optimist. I found this statement very interesting also: "It takes about half as much energy to produce a dollar of GDP today as it did 50 years ago, making the economy less vulnerable to swings in prices."