Feb 27, 2011

$4 Gasoline? Definitely in California, but Maybe Not for Everyone Else

As oil prices race toward $100 a barrel, the expectations that gasoline prices will make a leap are running high.

Some traders say $4 a gallon will be a reality in the not-too-distant future, and prices could shoot even higher....

"I don't think we're about to embark on a launch pad for another 2008. We went up to $4.11 by the summer. We went to nearly $5 for diesel," he said. He said the level where consumers start to feel real pain at the pump is about $3.80 to $4 per gallon.

"I'm definitely not in the group that's looking for the apocalypse right now. Let's watch California. California is the first state that will see prices go up to the point that will really impact consumers," he said. Read more at CNBC

Also on CNBC  IEA Chief: $100 Oil 'Very, Very Bad' for Economy