Wednesday, February 22, 2012

Gas prices going up again

It's been two months since I last blogged about gas prices, so it's time to revisit the subject with help from WXYZ.

Could gas prices rise to $5 a gallon by April?

The answer to the question is no unless one particular event happens. As I wrote last time:
Should Iran actually follow through with this [a blockade of the Strait of Hormuz], especially before they succeed in building nuclear weapons, there will be war and the price of gas will go to $5.00/gallon.

I have my doubts Iran's threats will much beyond saber rattling.
I don't know if Iran is so reckless as to invite the U.S., EU, Saudi Arabia, Kuwait, and who knows who else to beat up on them. That written, stranger things have happened, such as Manuel Noriega waving a machete on Panamanian television in 1989 and declaring that a state of war existed with the United States. That didn't work out too well for him.
The day after WXYZ posted the video above, the station broadcast and then uploaded the following clip that features a more measured analysis and gives a more reasonable answer to the question posed in the preceding segment.

Gas prices are soaring across the country and they could slam the economy.

As I wrote above, $5 gas by April is not likely. On the other hand, $5 gas by this summer I could believe, especially during high-demand holiday weekends. As for whether those predictions come to pass, that's up to Iran.

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