Celebrated economist predicts gas at $7 a gallon
Jeffrey Rubin, chief strategist for CIBC World Markets and a man with a track record of accurate prognostication, has looked ahead to 2012 and does not like what he sees.
In a new report titled "The Age of Scarcity", Rubin predicts that the price of oil will hover at or above the $115 range through this year, and rise to $225 by the year 2012. That would raise the price of gassing up the Family Truckster to about $7 a gallon ($2.25 a litre).
In an interview with the National Post, Rubin said that the reasons for the price shock are straightforward - more demand from from China and India, and insufficient supply. He suggest that in four years, there will be fewer North Americans on the roads as driving becomes less affordable.
If Rubin's predictions are accurate, we're in for a rough ride ahead, as prices for everything requiring fossil fuel energy in the manufacturing or transportation process - i.e. everything - jump in tandem with rising fuel costs.
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