Skip to main content

Is $3 Gallon Near?

NEW YORK -- Gasoline prices, reversing a two-month slide, are again approaching records and at least one expert thinks they could hit $3 per gallon soon in the United States, according to CNN/Money.

"We'll see it within a year," T. Boone Pickens, head of the billion-dollar hedge fund BP Capital Management, said on CNN's "In The Money" over the weekend.

Pickens noted the discrepancy between the $2 per gallon price of gas in the United States and $5 per gallon price in Europe. "The energy situation is global," he said. "I know there are taxes involved in the pricing . . . but eventually it's going to have to move up."

Gasoline prices mounted a renewed surge last month, with regular self-serve rising 8 cents to average $2.21 a gallon, according to the Lundberg Survey. That's just 7 cents below the all-time high set April 8.

Pickens said a shortage of oil is the main reason behind the price increase and didn't see how the world could produce more than the current 84 to 85 million barrels a day that currently comes out of the ground.

"We're coming up on a brick wall," he said. "The fourth quarter this year is going to maybe be the most interesting quarter I've ever experienced in my 50 years in the oil industry."
This ad will auto-close in 10 seconds