How much longer for cheap gas?

As of April 10, 2009, the price for a gallon of regular grade gasoline in Chicago was about $2.18 (according to the AAA Fuel Gauge Report). For comparison sake, at the same time last year, the price for the same gallon of gas was $3.55 and rising daily on it's way to the eventual record high of $4.34 in mid-July. The current price per gallon difference of $1.37 has been a nice economic stimulus for drivers, saving them anywhere from a few to hundreds of dollars each month, depending on the number of miles they drive.

With gas prices at their lowest (seasonal) level in five years, the question is...how long will this party last? The answer is tied directly to the economy.

Simply stated, it comes down to the good, the bad, and the ugly (apologies to Clint Eastwood).
The GOOD: Once the global downturn is reversed, major economic engines will start to crank up, jobs will return, and production will increase because consumers will return to the marketplaces they began to distance themselves from in 2008.
The BAD: All of this activity will cause an increase in demand for oil, which in turn will put upward pressure on gasoline prices.
The UGLY: Don't forget about the profit taking speculators, who by some estimates were responsible for as much as 25% of the run-up of oil last year.

It can be confusing, and most of us realize that there is little we can do to control the price of oil. Even with global consumption dropping like a stone, the commodities markets find creative ways to artificially inflate prices. Earlier this week, the price of oil jumped on the news that the decrease in demand wasn't as big as anticipated. Makes sense...right. The price jumped on decreased demand information. That puts a different face on the concept of supply and demand.

Be prepared for this ride to end soon. We may not see prices jump to new records in the near future, but price increases are inevitable. There are too many rich oil people sweating right now.