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$10 Gas? The Obscure Maritime Rule That Could Make it a Reality

$10 Gas? The Obscure Maritime Rule That Could Make it a Reality

The shipping industry is making a long-overdue shift to cleaner fuel. But after years of procrastination, the abrupt change could send oil prices soaring – and spark another recession.

US News & World Report
By Alan Neuhauser, Staff Writer 
July 31, 2018, at 2:09 p.m.

A LITTLE-NOTICED RULE requiring large ships to soon slash the air pollution they produce threatens to drive benchmark oil prices as high as $200 a barrel, send prices at the pump soaring to $6 or even $10 a gallon and crash the global economy just 17 months from now.

The doomsday scenario was described in a paper last week by Philip Verleger, an economist who advised two presidents and correctly forecast in 2007 that oil prices would sharply rise to levels that could trigger a financial crisis – a development experts say contributed to the Great Recession. And in his latest prediction, he's not alone.

Goldman Sachs, Morgan Stanley and other industry experts have issued similar warnings about significant increases in oil prices to come.... FULL ARTICLE

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