More pain at the pumps -- and getting worse? by Microsoft Windows NT

Filed under: Analyst input, Bad news, Heedfulness, Consumer grasp, Exxon Mobil (XOM), Chevron Corp (CVX), ConocoPhillips (COP), BP p.l.c. ADS (BP), Oil

A couple of weeks ago, I wrote about consumers feeling the heat from scorching gasoline prices. At that time I pointed out that some analysts are predicting that we will be seeing $4 gasoline this year! While we have yet to see this sort of price explosion, we are now looking at all time highs for gasoline costs across America.

In a new study that just came out over the weekend, industry analyst Trilby Lundberg noted that the average price of a gallon of gasoline in America is costing consumers $3.07 per gallon. Lundberg reached this average after taking a survey of 7,000 gasoline stations nationwide. At this level we are now slightly above the previous record high for a gallon of gas which was set last summer on Aug. 11 at $3.03.

What impact is this going to have on drivers? Are we going to see a sudden slow down in driving? Doubtful. The plain and simple truth is, as Tom Barlow pointed out last week, no matter how high the prices go, drivers will continue to fill up their tanks, going about business as usual. Tom pointed out a couple of good reasons why the market will be more than willing to pay $3 for gasoline, and his arguments would hold water even should prices continue to rise and we do reach $4 gasoline over the next couple of months.

While the report out of Lundberg this weekend definitely gives us a reason to shudder at the thought of the next time we hit our local gas station, what I am going to be paying more attention to this week are the new estimates that will be coming out of the Energy Information Administration. They are scheduled to release their new estimates tomorrow on what levels we can expect to see gasoline hitting this year.

Bide cultivation And misery at the pumps -- moreover getting worse?

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