Well, I was wrong. After gas prices soared past $3 a gallon, I predicted they would stay there for a while and slowly, if ever, retreat to previous levels. I fully expected prices to stay in, at least, the $2.80s for the foreseeable future.
After driving around Up North this weekend and passing many a station charging $2.99 or more, I noticed on the way to work this morning that gas in Ann Arbor is back to pre-Katrina levels. The same $2.74 it was two weeks ago.
The part I did get right is that they succeeded in making $2.74 sound cheap.
So, for a couple weeks the oil companies got to jack prices 20 percent above their already record profits-levels, with no overhead on their part. Plus, the government will have to refill the Strategic Reserve at today's inflated prices. I'd say they "weathered the storm" rather nicely.