NBC Dismisses Oil Experts Who Foresee Falling Gas Prices
Happy with the falling prices at the pump? Fuhgeddaboudit!
Thatâs what economic wiseguy Matt Lauer suggested to viewers of the August 30 âTodayâ show, even though oil analysts predict falling gas prices this fall and his own network erroneously predicted $3.50-a-gallon gasoline just a few weeks ago.
âYouâre probably feeling a little better these days when you fill up your car at the gas station,â Lauer admitted as he teased a story by correspondent Kevin Tibbles. The âTodayâ host conceded that âanalysts say prices could keep falling for months to come,â but sought to shoot it down by pointing to the pessimistic projections of an auto executive.
Tibbles pointed to a âwake-up call from Chrysler (NYPSE: DCX) CEO Thomas LaSorda,â who said at his company they were âplanning internally as if it [gasoline] is $3-to-$4-a-gallon.â Tibbles added that LaSorda âexpects prices to remain that high for the rest of the decade.â
Long-term prices could remain that high, but NBC recently projected a gas price spike before summerâs end. Instead, gas prices have fallen more than 18 cents per gallon in a month to $2.823.
As the Business & Media Institute (BMI) reported two weeks ago, NBCâs Jim Goldman told viewers of the August 12 âNightly Newsâ that gas prices were âexpected to soar past $3.50-a-gallon as the summer driving season peaks.â BMIâs August 14 article pointed out that even then those projections were pessimistic compared to other oil analysts such as Trilby Lundberg and Tom Kloza, who predicted more modest gas price increases.
âThe only place they have to go is down,â gasoline analyst Fred Rozell told reporter James Healey, adding, âWeâll be closer to $2 than $3 come Thanksgiving.â
Whatâs more lower gas prices could benefit an economy by freeing up cash for consumers to spend elsewhere. Healey added that economist Richard DeKaser believes lower gas prices âmay act like a tax cutâ and increase consumer spending that has fallen off due to high energy prices.