As of this morning, petroleum prices have soared to $67 a barrel. By the time the week is out, well, who knows where things will stand? The numbers on the neighborhood gas station’s marquee are spinning like a slot machine, and where we once wondered if we could tolerate $2 a gallon, $3 could soon be the norm. What’s surprising is the relatively modest impact the run-up has had on the U.S. automotive market. Sure, sales of the biggest SUVs have slipped a bit, but Chrysler still struggles to meet demand for those Hemi-powered 300C sedans. And with a little nudge from incentives, overall U.S. sales last month tapped an all-time record. The question is whether this can continue indefinitely. At some point, motorists say, “enough is enough,” and walk away from the biggest gas guzzlers. Worse, we’re sending more and more money overseas to pay for oil, and eventually, that will have a big impact on the economy, and the number of folks who can afford new cars.
Here's a more complete report on the latest run up. And you might want to take a look into the new national energy policy to see what, if anything, it might mean for pump prices.
Why are prices setting new records, and what will it mean for you? We'd like to hear your thoughts, so click the comment button below.
August 15, 2005
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