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CNN Live Sunday
Interview With Trilby Lundberg
Aired February 09, 2003 - 17:20 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: As you can see, 90 percent of those polled think that one result of a possible war with Iraq will be higher oil prices. And in addition, most people think that the U.S. will be plunged into a serious recession, should troops be sent into Iraq.
Regardless of what you think about war with Iraq, you could wind up pouring more of your cash than ever into your gas tank.
The Lundberg Survey, which reports the rise and fall of gasoline prices, says the average price per gallon in the U.S. has soared 11 cents in the past two weeks. The Energy Department predicts near record prices at the pump by spring.
And the price spike isn't the only -- well, it isn't only because of the prospect of war in the Middle East.
Joining us by phone is Trilby Lundberg of the Lundberg Survey.
Trilby, we're always interested in looking at your figures, because you track these prices so well. Give us the nuts and bolts. Why do you think the prices have gone up so much just in the last couple weeks?
TRILBY LUNDBERG, LUNDBERG SURVEY: There was a bit of a bottleneck. Gasoline prices failed to keep up with crude oil before, and now they're catching up. Both crude oil and gasoline prices are up about 20 cents in two months.
LIN: But the bottom line is why? Is it because of the prospect of war with Iraq or is there -- are there other reasons?
LUNDBERG: There were three phases affecting the prices: first the war premium of one year long was a few dollars per barrel. Then, Venezuela at the beginning of December went on strike, its oil sector, depriving physical product. And then war jitters became war preparations, so we have several more dollars, about $8 more per barrel.
LIN: So what about the strategic oil reserve? Is that a solution? I mean, we've got a big pot of oil, essentially, that the government stores here in the United States. Why can't the government, or should the government, release that to try to stimulate the economy and give some relief to consumers?
LUNDBERG: I believe the government will when it is necessary. There has been hesitancy on the part of the White House to use it as a price arbiter or an influence on price alone, but rather wait to use it for emergencies as it was designed to be.
LIN: So do you think war would be an emergency?
LUNDBERG: Absolutely.
LIN: And so your prediction is the government will release the tab?
LUNDBERG: If it is perceived that there was a shortage of oil and that this endangers the U.S. and its allies.
LIN: All right. Thank you very, Trilby Lundberg. We'll be looking for those prices to go down.
LUNDBERG: Thank you.
LIN: Hopefully, some time soon.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired February 9, 2003 - 17:20 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: As you can see, 90 percent of those polled think that one result of a possible war with Iraq will be higher oil prices. And in addition, most people think that the U.S. will be plunged into a serious recession, should troops be sent into Iraq.
Regardless of what you think about war with Iraq, you could wind up pouring more of your cash than ever into your gas tank.
The Lundberg Survey, which reports the rise and fall of gasoline prices, says the average price per gallon in the U.S. has soared 11 cents in the past two weeks. The Energy Department predicts near record prices at the pump by spring.
And the price spike isn't the only -- well, it isn't only because of the prospect of war in the Middle East.
Joining us by phone is Trilby Lundberg of the Lundberg Survey.
Trilby, we're always interested in looking at your figures, because you track these prices so well. Give us the nuts and bolts. Why do you think the prices have gone up so much just in the last couple weeks?
TRILBY LUNDBERG, LUNDBERG SURVEY: There was a bit of a bottleneck. Gasoline prices failed to keep up with crude oil before, and now they're catching up. Both crude oil and gasoline prices are up about 20 cents in two months.
LIN: But the bottom line is why? Is it because of the prospect of war with Iraq or is there -- are there other reasons?
LUNDBERG: There were three phases affecting the prices: first the war premium of one year long was a few dollars per barrel. Then, Venezuela at the beginning of December went on strike, its oil sector, depriving physical product. And then war jitters became war preparations, so we have several more dollars, about $8 more per barrel.
LIN: So what about the strategic oil reserve? Is that a solution? I mean, we've got a big pot of oil, essentially, that the government stores here in the United States. Why can't the government, or should the government, release that to try to stimulate the economy and give some relief to consumers?
LUNDBERG: I believe the government will when it is necessary. There has been hesitancy on the part of the White House to use it as a price arbiter or an influence on price alone, but rather wait to use it for emergencies as it was designed to be.
LIN: So do you think war would be an emergency?
LUNDBERG: Absolutely.
LIN: And so your prediction is the government will release the tab?
LUNDBERG: If it is perceived that there was a shortage of oil and that this endangers the U.S. and its allies.
LIN: All right. Thank you very, Trilby Lundberg. We'll be looking for those prices to go down.
LUNDBERG: Thank you.
LIN: Hopefully, some time soon.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
