Gas prices to go down?
Rita didn't cause the damage that was expected and some industry analysts have forcasted a significant decline in crude oil prices for the future. In fact, they say that we will not see oil prices at this level in the next five years. Peter Beutel, president of Cameron Hanover, is the leading analysts making these predictions. According to Beutel, if oil prices were to continue to be as high as they are now, they would spark a global recession which would eventually reduce oil demand significantly. Although these predictions sound great, and they provoke a positive image of the future, can we believe them? Crude oil traded at $68 (per barrel) last wednesday, Beutel is predicting oil prices to fall between $25 and $35 in 2006 and 2007. Do these numbers seem far-out to you or is it just me? Simple, economic, explanations and very risky, future, forcasts seem a little to shakey to believe!