The trading price of crude oil (per barrel) dictates the price of gas. The reason we saw crude go so high (up to $147 per barrel) is due to high worldwide demand and people flipping oil purchase contracts just like they were flipping houses (It was last ditch hail Mary attempt to make quick money after the housing market had collapsed).
Now that the oil purchase contract flipping scheme has burst and we are in a worldwide recession, demand gone WAY down WAY fast. Currently oil is trading at $55 per barrel.
OPEC will try to raise oil prices, but will fail for the time being because there is just not enough worldwide demand.
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momijizukamori
no subject
Date: 2008-11-19 04:21 pm (UTC)Now that the oil purchase contract flipping scheme has burst and we are in a worldwide recession, demand gone WAY down WAY fast. Currently oil is trading at $55 per barrel.
OPEC will try to raise oil prices, but will fail for the time being because there is just not enough worldwide demand.