CNN's 'Your $$$$$' Gets Gas Price Prediction Wrong
CNNâs âYour $$$$$â is ready for a spike in gas prices. It just hasnât happened despite predictions.
It didnât happen.
In a segment entitled âAddicted to Oil,â co-host Ali Velshi reported that rising crude oil prices could be trouble for the economy. âOil topping $90 per barrel,â which, Velshi helpfully added, âis 10 bucks from a hundred.â He implied the possibility of breaking the Benjamin-barrier was upon us.
Velshi then asked Beutel, âAre we going that way?â
Beutel replied, âYes, it is possible.â
Velshiâs co-host Christine Romans mentioned the relationship between rising crude oil prices and the cost of gasoline.
âAre we going to see this at the pump in the near future?â she asked.
Beutel confidently predicted gas price increases: âYes, we are going to see it next week âŚyou will see 20 cents coming next week.â
One week later, the AAAâs Fuel Gauge Report dated October 27 reported the average price of gas remained steady the week following at $2.837 for a gallon of regular. By October 29, it had reached $2.856 â an increase of about 3.5 cents since the 20-cent prediction.
But on the October 20 show, the CNN guest expected gas prices to top $3, pushing the gloomy predictions of an economic downturn caused by higher crude oil prices.
Velshi continued to lead on the dangers of oil price increases, asking, âCan this cause a recession?â
Beutel replied, âI think it is [a danger].â But Beutel reminded us of his track record of past predictions: âA lot of people tell me Iâm wrong [about a recession] and so far Iâve got to admit Iâve been premature.â
What some might have called a âwrong predictionâ CNNâs guest called âpremature,â implying that a recession is still ahead. Beutel said, âWe have not seen [a recession] and I thought we would.â
Beutel got it wrong. Unfortunately, he was not on the October 27 program to explain his error or the welcome news of stable gas prices.
But CNN was not about to give up talking down the economy. Instead of Beutel, CNNâs Jennifer Westhoven stepped in and made some more predictions on the October 27 edition of âYour $$$$$.â On the segment, âCrude Awakening,â she rhetorically asked at âwhat point are we going to have these higher [crude oil] prices tip the economy into, potentially, recession?â
She reported that the current gas price was $2.82, the same as one week earlier. âBut there are plenty of analysts who say that we can probably expect to see a jump of 10 to 15 cents in the coming weeks.â
She didnât say if one of the analysts was Beutel.