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August 31, 2005
$4 gas around the corner? Perhaps.
Econbrowser (James Hamilton) with the latest:
But then I look at the size of the challenges we face today. The price of the September gasoline futures contract went as high as $2.92 a gallon today before closing at $2.61. That $2.92 high would be $1 more than the price of the same contract last Friday. Contemplate the consequences if the retail price were to move $1 per gallon in a few days, and you grasp the magnitude of the situation we're in.
Bloomberg found at least one person who has contemplated it:
"We're going to be over $4 a gallon retail by the end of next week," said William Shireman, executive vice president of Gas City Ltd., a 50-station chain based in Frankfort, Illinois. Shireman said major oil companies have stopped selling unbranded gasoline to independent retailers in Illinois and have cut back on contract allotments. He declined to say which companies were halting unbranded sales. The wholesale price he pays for gasoline has "gone up about 80 cents a gallon in two days," he said.
Are you ready for that, America?
Indeed.
Posted by William Polley at August 31, 2005 9:50 PM
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