Gas prices could hit $2.50 a gallon by November, analyst predicts

By » Fri, June 22 2012
6625148339 6b552b71ee b 450x302 Gas prices could hit $2.50 a gallon by November, analyst predicts

Single-digit gas prices to two decimals. (img by Steve Snodgrass)

tl;dr the Saudis are probably America’s bitch.

@BBJ:

 Gas prices have been dropping steadily in Massachusetts since April, and according to at least one analyst, that may just be the tip of the iceberg.

Energy analyst Philip Verleger told Bloomberg TV that U.S. drivers could see $2.50-a-gallon gas prices by November.

The cause is two-fold, he said: the price of oil has fallen sharply recently due to over-production in Saudi Arabia and falling demand due to Europe’s economic slowdown is also a factor, said Verleger.

“Saudia Arabia really runs the oil market … and the Saudis right now have several reasons for essentially overproducing, or producing more than the market needs, and pushing prices down,” said Verleger in a recent interview on Bloomberg TV.

The Saudis want to keep oil prices down to put pressure on Iran and Russia, Verleger said. They are angry with Iran over its nuclear program, and upset with Russia over its military aid to the embattled Syrian government, he said.

Saudi Arabia also prizes its membership in the G20 group of nations, which met this week in Mexico, Verleger said.

“What they’re doing is essentially trying to give the world a help,” Verleger said.

Read @the Boston Business Journal

That’s funny, Saudi Arabia is mad  at the same countries the US is. Isn’t that funny? That’s funny.

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