$7 Gas? Analyst Sees It by 2012

Limited supply, ever-increasing demand will nearly double current prices
By Will McCahill,  Newser Staff
Posted Apr 25, 2008 4:54 PM CDT
Gas prices, now approaching $4 per gallon in the US, could hit $7 a gallon by 2012, an analyst tells MarketWatch.   (AP Photo/Paul Sakuma)
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(Newser) – Oil and gas prices could double in the next four years, analysts say—with $7 per gallon possible by 2012. "It is increasingly clear that the outlook for oil supply signals a period of unprecedented scarcity," an analyst at investment bank CBIC tells MarketWatch.

Gas currently averages $3.56 per gallon in the US; oil, which hit a record high of $119.90 per barrel Tuesday before receding somewhat, could be at $200 per barrel within four years as demand continues to soar—mainly in the developing world.