$6 gas? Could happen if dollar keeps getting weaker.
Under the right conditions, gas could cost as much as $6 per gallon by the summertime
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Others, though, say gasoline prices haven't needed any help so far from other events—the moves by the Fed to keep interest rates in negative real terms are enough to boost energy by themselves.Skip to next paragraph
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"When you have negative correlations that strong, it's not hard to understand that the reason why we're having this price spike in commodities is primarily because of the weaker currency and not because of shortages of oil or international tensions or global growth," Pento says.
The assertion from Hastings that the weak dollar is responsible for one-third of the total cost for a gallon of gas "sounds very low," Pento says, adding that a barrel of oil should be closer to the $65 to $70 range if priced properly.
"That's exactly where it would be if we weren't crumbling our currency," he says.
Should events follow their current course, sharply higher gas prices will burden consumers further as they also cope with the rise in food costs this year.
"The global economy is quite strong, and the weak dollar is basically fueling even higher energy prices. That's not transitory," Cardillo says. "Gas prices in the Northeast are over $4 a gallon. How could anyone say that's not a burden?"