CNN's 'Your $$$$$' Gets Gas Price Prediction Wrong
CNNâ€™s â€śYour $$$$$â€ť is ready for a spike in gas prices. It just hasnâ€™t happened despite predictions.
It didnâ€™t happen.
In a segment entitled â€śAddicted to Oil,â€ť co-host Ali Velshi reported that rising crude oil prices could be trouble for the economy. â€śOil topping $90 per barrel,â€ť which, Velshi helpfully added, â€śis 10 bucks from a hundred.â€ť He implied the possibility of breaking the Benjamin-barrier was upon us.
Velshi then asked Beutel, â€śAre we going that way?â€ť
Beutel replied, â€śYes, it is possible.â€ť
Velshiâ€™s co-host Christine Romans mentioned the relationship between rising crude oil prices and the cost of gasoline.
â€śAre we going to see this at the pump in the near future?â€ť she asked.
Beutel confidently predicted gas price increases: â€śYes, we are going to see it next week â€¦you will see 20 cents coming next week.â€ť
One week later, the AAAâ€™s 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, â€śCan this cause a recession?â€ť
Beutel replied, â€śI think it is [a danger].â€ť But Beutel reminded us of his track record of past predictions: â€śA lot of people tell me Iâ€™m wrong [about a recession] and so far Iâ€™ve got to admit Iâ€™ve been premature.â€ť
What some might have called a â€śwrong predictionâ€ť CNNâ€™s guest called â€śpremature,â€ť implying that a recession is still ahead. Beutel said, â€śWe have not seen [a recession] and I thought we would.â€ť
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, CNNâ€™s Jennifer Westhoven stepped in and made some more predictions on the October 27 edition of â€śYour $$$$$.â€ť On the segment, â€śCrude Awakening,â€ť she rhetorically asked at â€śwhat point are we going to have these higher [crude oil] prices tip the economy into, potentially, recession?â€ť
She reported that the current gas price was $2.82, the same as one week earlier. â€śBut 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€ť
She didnâ€™t say if one of the analysts was Beutel.