WASHINGTON — The U.S. economy is in a “danger zone” because of near record-high crude oil prices and the world’s producers must boost supply to prevent shortages, U.S. Energy Secretary Sam Bodman said Thursday.
Sustained U.S. crude oil prices near the $80 level could harm the U.S. economy, and both OPEC and non-OPEC producers should “look at what the facts are,” Bodman told reporters.
“We’re in a … danger zone right now, so that’s why I hope that both OPEC and non-OPEC nations will look carefully at the facts,” Bodman told reporters.
“I am concerned that where we are operating, in the ranges that we’re talking about now where you are approaching $80,” Bodman said.
Some have indicated that oil will reach $100 per barrel by the end of this season. See my post about this possibility. In the meantime, gas around here is the cheapest it’s been in months: $2.77.
BZ
Mine as well are lower than they have been for some time. Interesting. $2.85 down the street for the cheap stuff, which fortunately is what my car runs on.
Gas is relatively cheap at the moment which means fill your tank while you can and hope the prophets of doom are wrong (which they probably are.)
Kind of like the predictions that the bottom was going to fall out of the stock market today.
Be wise. Be cautious. But don’t jump to conclusions.
I can only hope those things DON’T go that direction. I suspect the current prices are an attempt to lull us to sleep.
BZ
I think you’re dead on BZ…
Our prices are the lowest they’ve been in quite awhile too so I’m just enjoying it while it lasts.
Fuel prices are affected by so many things. Many of these things are external to the oil and futures markets.
*taxes
*mix regulations
*forced ethanol requirements
*etc.
It would be nice if the only factors were due to the oil market but governments make a lot of cash off of our pain at the pump.