That means that a drum of oil will be about $200.00.
I have often thought that it would take a very quick spike in gas prices to make 'Mericans change their gas-use habits. In fact, I even wrote about it already (surprise) If it was too gradual, people would still bitch and grumble - but would take it easier. If we hit 7 before the end of the year - you're going to see some minor changes, and eventual shifts in culture. If it goes higher, and quicker, then you'll see bigger changes - however, I don't know how permanent they will be.
First, thought though, is the price of Diesel fuel - and I really wish Killre could illuminate this to the readers as he has a front line perspective of this issue. Baring his point of view - a typical truck filled with crap from China or Oranges from California costs about $1000.00 to fill-er-up. If you don't think that matters to you, I will recommend you eat an orange or a pineapple now on the first of May, because while you may still see them at your local grocery store, it'll probably cost $8 bucks. If you're bitchin' about $3.75 gas, no way you're buying an $8.00 pineapple.
So food prices will increase - because of the cost to make and transport it. And the US is plowing over rye and wheat to make more corn to make fuel...
Fuel is going up - Because it's a commodity that is traded back and forth based on speculation -or guesses based on other people's guesses. A very large bluff at a poker game.
But when will people actually sell their Lincoln Navigators and sell their homes to live closer to their place of employment? At what price is the tipping point for the box stores and the far-away suburbs turn into ghost towns? No really, I want to know!
It is possible that some folks will just go out and buy another car. They'll get that Prius and park it next to their Hummer2. That's what happened in the 70's. Some might even tele-commute. Perhaps it won't be as bad as they're making it out to be? Or we'll be plunged into a depression that we'll only be able to climb out of once we start WW5.... or aliens.
Something like that.