As crude hit $100 a barrel, I thought about slapping a “For Sale” sign on my car rather than taking one more painful trip to the gas station. I hear wonderful things about public transportation. Meeting new people, smelling new smells.
Luckily, I heard from Tom Kloza of the Oil Price Information Servicebefore I signed over the pink slip. He said that anyone who paid $3.10 a gallon last week may feel like the guy (or gal) who bought that barrel of crude for $100.09. In other words, you may have bought the most expensive drop of gasoline, at least for a while.
History certainly supports that notion. We tend to see a lull in gasoline demand in the dead of winter. Bad weather apparently doesn’t make road trips very appealing. This year high prices compounded winters dampening effect.
Also putting the breaks on gasoline prices: crude’s dramatic slide. $90 seems like more of a magnet for traders than $100. And many are wondering if the oil trade hasn’t stalled indefinitely.
Tom notes that prices in California have plummeted 50 cents a gallon. I’m willing to bet the rest of country will follow the trend lower. So stock up before spring, when the trend at the pump is likely to reverse.
Questions? Comments? energysource@cnbc.com
