We all seem to wait in anticipation of the end of the world when the price of gas reaches $4 a gallon. The steady march to that figure goes on as the true price now is in the high $3 and change area. But if you think things will be crazy when that milestone of $4 is hit, what about $7? That’s right, $7!!!!
According to U.S. News & World Report, a major forecaster at Goldman Sachs is predicting that oil prices could reach $150 to $200 within the next two years. What does that mean? When calculating the rise in cost of oil and how it relates to the cost of gas at the pump, the rule of thumb is a $1 increase in crude oil prices translates to a 5 cents increase in the price of gas per gallon. That means that if the cost of a barrel of oil reaches $200, then we will indeed be paying $7 a gallon at the pump.
Is this just another opinion piece? No, which is worrisome. You see, people from around the world who are familiar with this guy say that he usually is right on with his predictions.
Our take? All we can say is Wow!!