Why $90 Oil Won't Hurt as Much as You'd Think
By: Gallon Reg. Unleaded Gasoline
| April 1980 | $2.82 |
| 3Q 2007 | $2.86 |
| (Up) 1% |
Retail gasoline prices have slowly started to climb, up 4 cents since Tuesday, even as gasoline demand is at seasonal lows and refiners are making a cheaper winter grade gasoline.
Stephen Schork of the well-regarded energy newsletter The Schork Report says if oil prices are this high as gasoline demand ramps up for the winter holidays and Black Friday, retail gasoline prices will likely soar.
The worse may be yet to come. Zandi says if oil prices are still near $90 this spring, when the housing crisis is at is worst, consumers WILL definitely feel it. "The problem isn't now, it's then," he says.
Oil prices have been climbing for nearly two weeks straight, breaking new records almost daily. Friday's been no different with U.S. crude oil futures breaching the $90 a barrel level during the Asian morning session.