Knock on wood, but did gas prices peak?

It seems as all is good in the world as we see across the North America gas prices seem to be dropping.

Peaking in May 2011, prices are on their way down and are now averaging about 17% cheaper since then, in real world dollars, this means gas is averaging about 67 cents per gallon less. It is trending down for now, but the question is how long will this last?

I ask you now, are you an eternal optimist and view this as the start of a long term trend? Or is this "false" sense of security going to bite Americans in the long run?

What I personally take from this is that you cannot accurately make any sort of predictions. All the doomsday scenarios are simply media doing what they do best, and sensationalizing issues. To contrast this point I do forecast long term increases in the range of +$5/gallon but being the smart forecaster I am, there is no way I'll attach a date or even a year to that figure.

Joe_Limon - 12/5/2011 2:30:25 PM

0 Boost

$9/gallon ermm...

http://img.photobucket.com/albums/v39/joe_limon/alaska.png

800over - 12/7/2011 11:02:42 AM

+2 Boost

Umm I can predict the long term......My bold prediction: gas prices are going higher.

OBSERVER1984 - 12/5/2011 4:43:17 PM

+1 Boost

$3/gallon, you guys just don't know how cheap is your gas!!!

At the moment the average price in Europe is $7/gallon and in some countries people pay more than $8/gallon.

upwards - 12/6/2011 2:59:04 AM

+1 Boost

We will trade you gas prices for health care prices, work week lengths and retirement age.

thetruth01 - 12/5/2011 5:44:19 PM

+2 Boost

Oil just hit $102. Gas prices surprisingly have not kept pace with the current run up in oil prices. I don't see how long that can continue. I don't see gas prices satying below $3.50 for much longer. $4.00 won't be too far away.

BTW I saw a gas station this weekend that had an almost 60 cent higher price for diesel than regular. I'm sure the VW dealers are not pointing that out to anyone looking at the window sticker of a new diesel VW.

MorePower - 12/6/2011 2:32:42 AM

+2 Boost

It doesn't matter what the gas prices are right now. They will inevitably go up and the oil companies will make about $billion or so for the quarter.

HoustonMidtown - 12/6/2011 7:20:20 AM

+1 Boost

It was just reported that the US now exports more gas than we import....the prices better come down.