John Porretto, in an AP story, writes to warn against complacency. As bitter cold swept the north of the U.S. and Canada this week, we were reminded of the high oil prices just a few months ago. The downturn in the economy helped sink prices just before winter really hit. But some people are locked in. And some are seeing higher natural gas prices this winter for other reasons.
We will claw our way out of this recession—and the world demand for oil will climb back up. As the rising demand hits the supply ceiling, price will again soar. According to Porretto, “Some analysts say oil eventually could eclipse $150 a barrel, maybe even on its way to $200. In such a scenario, gasoline would easily cost more than the record high of $4.11 a gallon set last summer…No one knows for sure, but some analysts say the spike could happen as soon as next year, or perhaps in 2011 or 2012.”
Take advantage of the lower prices today to insulate yourself from the inevitable price increases down the road.