May 8, 2008 10:04 pm US/Central
Gas Prices Could Top $5 A Gallon In Bad Economy
CHICAGO (CBS) ―
Gas prices have reached another record high, and experts say nervous investors are partly to blame.
CBS 2's Derrick Blakley reports according to a local gas price Web site a West Side station at Ogden and Western Avenue has the highest price for unleaded regular in the area - $4.19 a gallon. But as prices continue to climb, that $4 barrier will soon be breached throughout Chicago.
As gas prices continue to run up, frustrated drivers are burning up.
"I just put about $20 in and I got about 3.2 gallons...this is crazy," said driver Cory York.
And one phrase that's dying out is "filler up."
"I'm not filling up, I'll tell you that, not gonna get a full tank," said Mike Hardesty.
"I know I need to fill up and it would be better, but I can't see the $60 to $70 in at one time," Gloria Samuels said.
After hitting record levels in trading Wednesday, oil prices fell a bit Thursday, to just under $123 a barrel.
But according to AAA, average prices for regular gas hit all-time record highs Thursday at $3.64 nationwide, almost $3.81 statewide, and $3.88 in Chicago.
"As long as crude oil continues to set new records, that doesn't bode well for commuters at the point," said Nicole Niemi of AAA Chicago.
Skyrocketing oil prices are driven by the kind of nervous investors who once bought gold, but now buy black gold.
"If you're worried about the economy, if you're worried about U.S. banks failing, if you're worried about banks failing overseas, you buy oil because it's something you can hold on to and use in the face of a total market collapse," said oil market analyst Phil Flynn.
How high could it go? Goldman Sachs says unless the U.S. economy perks up and the dollar gets stronger, oil prices could reach $150 to $200 a barrel, pushing gas prices upwards of $5 dollars a gallon.
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