Registered: Feb 2012
02-29-12 06:34 AM
A little about me, I started trading in early 1990s, currently I trade oil dollar bonds and few home stocks
This article peeked my interest because it is congruent with my own analysis of prices./
Panic is in the air as gasoline prices move above $4.00 per gallon. Politicians and pundits are rounding up the usual suspects, looking for someone or something to blame for this latest outrage to middle class family budgets. In a rare display of bipartisanship, President Obama and Speaker of the House John Boehner are both wringing their hands over the prospect of seeing their newly extended Social Security tax cut gobbled up by rising gasoline costs.
Unfortunately, the talking heads that are trying to explain the reasons for high oil prices are missing one tiny detail. Oil prices arenâ€™t high right now. In fact, they are unusually low. Gasoline prices would have to rise by another $0.65 to $0.75 per gallon from where they are now just to be â€śnormalâ€ť. And, because gasoline prices are low right now, it is very likely that they are going to go up moreâ€”perhaps a lot more.