Gas will be back below $2.50, and sometime way before 2018. Dont listen to the people who think gas is going to $7-$10. $2.50 wayyyy before $7 is the way gas is going. The demand for oil has dropped, with the US in a RECESSION and other countries around the world slowing demand for oil is dropping and will continue to drop.
i know I am going to buy some shares of USO(etf) to hedge against the higher gas prices. When gas comes down in a few months(dont know how much, but precitions by "people" are 90-100/bbl range). that would be a good time to buy some of USO
People think I'm nuts but I've always hoped to see gas at $5 a gallon or higher. High gas prices will force the US to seek alternatives which would solve a lot of their problems. The US sends about $750 billion a year out of the country to pay for foreign oil which is slowly bankrupting them. Global warming caused by burning oil may also be a serious threat that could result in the destruction of the earth as we know it. The best solution I see right now is to pour billions into the research of how to make oil from algae. The US could make all the oil from algae that they need in an area 100 miles by 100 miles. The oil from algae could be fed right into their existing oil refineries. Oil from algae produces CO2 when burned, but when you grow the algae it consumes that same amount of CO2. They already know how to make oil from algae, it's just that the cost of it is relatively high right now. With research and mass production it should be no problem to get that cost within reason. http://edition.cnn.com/2008/TECH/07/30/roadtrips.algae.fuel/
SUV and truck prices will fall further, IMO. Americans are 'twice bitten once shy' now. We went through this before when gas spiked, then dropped, and people who paid over sticker for Priuses then got burned as the prices dropped to 6k under sticker. Then oil spiked to 148/barrel and gas rocketed again. 19k Priuses were then selling for 26k or more at the peak back in early July. Consumers won't trust the future pricing of gas to be low at this point. So they won't go back to SUVs or Trucks unless they have a fundamental need for them (which eliminates 80% of the buyers).
I can't believe people still don't realize that supply is affecting the price. Its not a bubble. geeze.