Next Stop for Gas Prices $3 a Gallon?

Crude oil prices this week reached their highest level since last April. What will that mean for U.S. consumers at the gas pump?

Miriam Metzinger submits: Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday June 27.

Nicholas Southwick Levis submits:"In China the question is not price subsidies, the question is about first time drivers," warned Jeff Rubin, the former Chief Economist of CIBC World Markets. Rubin argues that the Chinese have surpassed the United States in car sales and coal consumption, and will not stop driving anytime soon-- regarless of higher oil. Rubin postulates that as higher oil prices restrain demand for gasoline for U.S.

Lisa Margonelli is the director of the New America Foundation's energy program and author of “Oil On the Brain: Petroleum's Long Strange Trip to Your Tank.” Her New York Times op-ed on the cost of an offshore drilling moratorium caught my eye, and so I asked her to expand on her arguments. What follows is a lightly edited transcript of our conversation.

Yesterday, Goldman was stopped out of its inflationary Long Brent reco for a 15.5% loss (for the clients of course, not for the Goldman counterparty traders who made 15.5%).

This report was sent to subscribers on July 27, 2011.  Join our free mailing list to receive actionable SIR information 48 hours before it is posted for the public… EXECUTIVE SUMMARY:

The price of oil plunged today, down more than $9 to $99.80. But the largest one-day drop in oil prices since the height of the financial crisis, is unlikely to stop talk that high has prices could kill the recovery.