Gas could fall to $2 if Congress acts, analysts say

WASHINGTON - The price of retail gasoline would fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy futures markets, four energy analysts told Congress on Monday. Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said the price of crude oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.

[perhaps short term - it would retard the speculation aspect which, ironically, is based predominantly on Congress' continued obstinacy re: supply. But I think the larger point is that demand will not only continue to increase vis-a-vis China & India, but that increase is accelerating - we need begin developing greater supply now to forestall double-digit fuel costs in the not too distant future - by one estimate, 15$ a gallon in 7 years if supply isn't meaningfully increased.]

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