NBC Dismisses Oil Experts Who Foresee Falling Gas Prices
Happy with the falling prices at the pump? Fuhgeddaboudit!
Thatâ€™s what economic wiseguy Matt Lauer suggested to viewers of the August 30 â€śTodayâ€ť 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.
â€śYouâ€™re probably feeling a little better these days when you fill up your car at the gas station,â€ť Lauer admitted as he teased a story by correspondent Kevin Tibbles. The â€śTodayâ€ť host conceded that â€śanalysts say prices could keep falling for months to come,â€ť but sought to shoot it down by pointing to the pessimistic projections of an auto executive.
Tibbles pointed to a â€śwake-up call from Chrysler (NYPSE: DCX) CEO Thomas LaSorda,â€ť who said at his company they were â€śplanning internally as if it [gasoline] is $3-to-$4-a-gallon.â€ť Tibbles added that LaSorda â€śexpects prices to remain that high for the rest of the decade.â€ť
Long-term prices could remain that high, but NBC recently projected a gas price spike before summerâ€™s 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, NBCâ€™s Jim Goldman told viewers of the August 12 â€śNightly Newsâ€ť that gas prices were â€śexpected to soar past $3.50-a-gallon as the summer driving season peaks.â€ť BMIâ€™s 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.
â€śThe only place they have to go is down,â€ť gasoline analyst Fred Rozell told reporter James Healey, adding, â€śWeâ€™ll be closer to $2 than $3 come Thanksgiving.â€ť
Whatâ€™s 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 â€śmay act like a tax cutâ€ť and increase consumer spending that has fallen off due to high energy prices.