$8 a Gallon Gas?

Are you planning for any changes if fuel costs double this year? What are you willing to do without or how are you otherwise going to stretch those dollars as well know as fuel jumps so does all other commodities?

Some analysts are saying that even $8 a gallon is on the low side for the potential price increase especially if thee is a conflict in the Middle East involving Iran. Military analysts are suggesting that the least aggressive tactic that Iran could employ would be to lay anti-ship mines in the Straits of Hormuz. Which would take the U.S. and probable ally England many weeks to clear. Imagine the sinking of one of our aircraft carriers and/or one large oil transport ship in the Straits. Sure, the very probable U.S. relatiation would be massive, but it would do nothing to ease the price of oil.

Others are suggesting that oil at $200 a barrel/gas at $8+ a gallon would spur a massive downturn of the U.S. economy; causing businesses to lay off people; propell another large stimulus; cause the Federal government to borrow more to pay entitlements; devalue the U.S. dollar and push the Fed into another rounds of Quanitative Easing - which of course if injecting more money into financial institutions further devaling the dollar causing inflation,....and posibly the Survivalist Prepper's fear, a hyper inflationary period.

Dominique de Kevelioc de Bailleul's article, titled "Worried About $6 Gas Prices? Try $8" from ETF Daily is a necessary read. To summarize the key points of this article:

$6 gas in the U.S. may be even a low-ball estimate.

We are now back above $4 per gallon for the first time since May 2011,” “In Europe it is close to the $10 mark.”

Expect a record gas price this summer. The oil market has entered the perfect storm.

We will see a minimum of $6 per gallon gasoline in the United States this summer.”

Military conflict with Iran could throw the $6 price target far off the mark, as approximately 17 percent of the world’s oil supply could be shut out for, not a matter of weeks as the Pentagon has estimated, but months.

There is virtually no limit to the upside for oil prices. The oil price could easily double.

Oil trading above $200 per barrel could easily take gasoline to $8 in the U.S., as a panic to secure already-tight global supplies could shock the American people into another significant downturn in the U.S. economy.

This could turn into really tough times, because the economy will be struggling in that environment, we could see QE3 in the midst of already record high gasoline prices. Now that will be wildly inflationary.”