Gas prices have been creeping upward: the statewide average currently sits at $2.59 per gallon. But that price could go much higher in coming years. A prominent oil hedge fund manager says that oil prices topping $300 per barrel is “not impossible.”
Back in 2008, when west Texas intermediate crude oil traded at close to $150 per barrel, the average price at the gas pump was $3.80 per gallon. If crude prices reached $300, then gasoline prices could be more than $7 per gallon.
Matt Smith, director of commodity research at ClipperData, says the prediction of $300 per barrel came from “a gentleman called Pierre Andurand, one of the world’s foremost oil traders. He’s made a number of calls in the past decade … which have panned out.”
What you’ll hear in this segment:
–Why oil producers may have cut back on supplies too much
–How long it takes to bring oil to market after making the initial investment
–Whether electric vehicles will drive up gas prices for those who still drive gasoline-powered cars and trucks
Christopher De Los Santos.
Written by Christopher De Los Santos.