NEWS07

Are high gas prices here to stay?

RICHARD DREW / Associated Press
It was another tough week on Wall Street, as the Dow fell nearly 500 points behind a surge in oil prices.

Published: Sunday, June 29, 2008 at 4:04 a.m.
Last Modified: Sunday, June 29, 2008 at 12:51 p.m.

Best case: Gas prices fall, easing inflationary pressures. Motorists embrace fuel-efficient vehicles and change their driving habits. Congress adopts restrictions on energy speculation.

Worst case: Gas prices continue to soar, driving up food prices and transportation costs. Consumers cut back on spending because their dollars don't stretch as far. Tourism suffers when travelers stay home.

The reality: Oil prices forecast to stabilize at about $125 a barrel through 2008 and 2009. At that level, gas would remain at slightly above $4 a gallon.


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