Energy Prices Soar

Physician's Money Digest, October15 2003, Volume 10, Issue 19

The recent run-up in gasoline pricesmay have caught drivers unaware, butthose who are tuned into the newsshouldn't be jolted by a steep rise in allenergy prices over the coming months.Delays in getting Iraqi oil back online areamong the many factors that are drivingoil prices higher, while supply shortagescontinue to push natural gas prices up.Energy experts who predicted oil at $21a barrel after hostilities in Iraq ended areinstead seeing prices still around $31 abarrel. A cold winter could put pressureon already thin natural gas supplies andratchet the price up to an all-time high.Experts say the good news is that Iraqioil will eventually start flowing andprices will drop. Tight supplies areexpected to keep natural gas costs highfor the foreseeable future, however.