I remember a few years ago Goldman Sachs published a study discussing oil at $100/barrel and it seemed impossible. Now we've blown right past that and are at $120/barrel. If they're talking about $200/barrel now, we'd best be warned.
What changes would you make if gas cost $10/gallon? Would you take public transportation more? Would you move closer to the train station? Would you stop taking road trips? I'd love to hear.
Think gas is pricey now -- how about oil at $200 a barrel?
HOUSTON -- Oil's meteoric rise to near $120 a barrel looks like more than just another economic bubble -- growing demand and tighter supplies are likely to keep prices high. Some analysts say even $200 a barrel would not be out of the question.
The latest price surge -- pushing crude to record heights in recent weeks, and to nearly double its level a year ago -- has some components of a classic price bubble, but growing worldwide thirst for crude -- in large part from rapidly developing China and India -- means consumers likely won't get any relief.
Americans who hoped to ride out temporarily high prices by carpooling or driving less may have to make those habits permanent. Retail gas prices, which at times rise in tandem with crude oil, are in record territory near $3.60 a gallon.
Many observers blame speculators for bidding up the price as a hedge against inflation and as protection from the sinking U.S. dollar.
Widely watched oil price prognosticator Goldman Sachs has said oil could average $110 a barrel by 2010, up from a previous forecast of $80, and that a spike as high as $200 a barrel is possible in case of a major supply disruption.
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