Thread: Gasoline at $4 Coming to a Pump Near You, Unfazed by Rising Tab
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Old 04-12-2011, 02:12 PM   #2557
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Quote:
Originally Posted by BCD View Post
Wow. Any chance we could see something similar that happened in 08?
I wouldn't think so. A big part of the run in 2008 was that there actually was a demand supply issue. There simply wasn't much of a surplus capacity then and it very easily could have gone negative. The high prices then took a lot of demand away and the price plummeted. Add in that it was also overpriced through speculation and away it went.

Now, we have a pretty decent surplus, so supply can meet demand plus. This rapid rise over the last month or so has been primarily due to issues in the ME threatening (and actually reducing) supply. It seems like things in Libya are getting under control.

So, I think we could easily see a drop down to the $90 range over the next few weeks. But, we also have summer coming up.

That's my guess.
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