One way to beat the possibility of $4-a-gallon gas this summer is to take a long shot – betting it will jump to $5 a gallon.
As oil and gas prices raged ahead yesterday toward new record highs, an online wagering outfit said it has a way, although quite iffy, to hedge against gas pump gouging.
Online bettors could earn enough to tank up their SUV a few times over this summer by betting that gas prices by June 12 will average at least $5.01.
“It’s a hedge that’ll pay off pretty well,” said Freddie Harris, general manager of YouWager.com, an offshore betting service.
If unleaded regular reaches anywhere between $4 to $5 a gallon, based on official national averages of the Automobile Club of America, the payoff is 3-to-1, and if prices exceed $5 a gallon by even a penny, the payoff is 8-to-1.
“You could win $800 on a $100 bet,” said Harris. “That would probably keep you in gas for the summer.”
Crude climbed here yesterday to $72.14 a barrel, setting a record high for the third straight day. Gasoline is already topping $3.50 throughout the metropolitan area, with some analysts seeing a spike to $4 by Memorial Day.
Oil analyst John Kilduff of Fimat USA believes crude could soar to $80 a barrel by June.