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Analyst Now Predicting Dramatic Drop in Price of Gas

by Brian Carr on September 5, 2006

Turn 21 today

It seems that analysts who cover the prices of gasoline are becoming more and more like weathermen – they can tell you exactly what’s going on right this moment, but their future forecasts aren’t worth the paper they’re written on.

In an article published on USAToday.com, Fred Rozell, gasoline analyst at the Oil Price Information Service (OPIS) stated, “The only price they [gasoline prices] have to go is down.  We’ll be closer to $2 than $3 come Thanksgiving.”

Interesting.

This “promise” of a continued drop in the price of gasoline is coming from the same group of people who predicted continued price INCREASES as gas prices hit record highs.  Since then, prices have fallen over 11%.

Fool me once, shame on you.  Fool me twice, shame on me.

Maybe it’s the pessimist in me, but I don’t believe there’s going to be a dramatic drop in the price of gas in the near future (or ever).  I do think that the prices will continue to drop, as they historically do at this time of year, but to say prices will be closer to $2 than $3 within two months is rather unlikely.

Although, I suppose $2.49 is closer to $2 than $3, so maybe that’s what the OPIS analyst meant.

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