Memorial Day Gas Prices Fall: Goldman Sachs Warns $5 a Gallon Still Coming

Gas prices have fallen about 30 cents over the past couple weeks. Strange when you consider today is Memorial Day. Remember the predictions? $5 a gallon by Memorial Day?

Those predictions may have not come true, but they haven't exactly gone away either.

Goldman Sachs' crystal ball is proclaiming that oil will soon soar to $135 a barrel, and likely have service stations jacking up fuel prices to $5 a gallon in New York just like the summer of 2008 that preceded the recession.

Indeed, analysts say Goldman and the other oil trading giant that also has the might to move prices, JPMorgan Chase, have already placed their energy bets for the summer. JPMorgan predicts oil hitting $130 a barrel in the coming weeks.

Of course what this does is convince more people to take summer vacation in June, which pushes up demand and drives up costs.