$4.00 Gas? It's Sooner Than you Think!

A barrel of oil closed today up $1.89 at $119.37 after reaching a new high of $119.90! That's right folks we are looking at over $120 for one barrel of oil. It seems with every passing day we hit new outlandish highs for the price of crude and yet the Federal Government continues to turn a deaf ear as consumers pay more for gas in a month than they do on their ailing house payment. Most of the price hikes have to do with a reduction in inventory reserves, the weakening dollar and supply disruptions having to do with Nigerian pipeline explosions.

Many leading economists predict $4.00 gas at the pump as early as late May while parts of the country (San Francisco California) have already had the pleasure of opening their pocket books to this outrageous price! Meanwhile companies like Chevron and Shell continue to make billions a quarter (yes that's right!) billions a quarter in profits and can you believe this was below analyst expectations. So what do these companies do, they take this time of rising prices and further add fuel to the fire by shutting down pipelines for maintenance adding to the reduction in capacity utilization which is approaching below 80%. Basically this means that these companies COULD produce larger quantities of crude per day but refuse to do so. What happens when demand is high and supply is low? High, high and higher prices. What a mess!!!

Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker