Fox: Oil at $200 will wreak havoc
Fox Business checked in with some experts to do some analysis and number crunching: What if oil reaches $200 a barrel?
The scenario ain’t pretty:
Imagine paying $5.75 or more for a gallon of gasoline. How about $7 for a gallon of heating oil. Now consider shelling out $6.50 for a gallon of milk, or $5 for a dozen eggs.
Welcome to the United States of America if the price of oil surges to the once unthinkable level of $200 a barrel. …
Thus if crude oil hits $150 per barrel, U.S. motorists can expect retail prices to jump about 75cents per gallon, landing somewhere in the $4.50 per gallon range. At $175 per barrel, gas shoots up to $5 a gallon. And at $200 per barrel it hits $5.75 gallon of gas. (Again, higher on the West Coast and New York.)
All of this could be further impacted if U.S. refining capacity was crimped for any reason — most likely by a hurricane in the Gulf of Mexico.
Posted: May 22nd, 2008 under Gas prices, In the News.
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