What a ride! Fuel prices are slipping dramatically as oil has dropped from a staggering $130 plus dollars a barrel a few months ago down to less than $80 today. The primary reason for this roller coaster ride is determined to be from market speculators.
Yep, the wall street Harvard and Yale geniuses were part of the build up to astronomical oil prices to fill their wallets and drive this economy into a downward frenzy. The American public is on to them now as we all have had to cut back on everything, thus all other markets began to slow down. As fuel prices rose all other markets slowed and prices rose. I do all the shopping in my house and it was clearly evident food prices rose. Goldman Sachs not too long ago squeeled that $200 a barrel oil was near and is now touting $40 a barrel is not too far away. Don't listen to Wall Street!
Gasoline is now below $3.00 a gallon and could drop down to the lower $2.00 range. Some even feel $50.00 a barrel is not far away as American fuel consumption fell to 10 year lows. OPEC is considering cutting production to boost prices when a few months ago they were asked to increase production to lower prices.
President Bush released drilling options on thousands of potential drilling sites and Congress allowed the off shore drilling ban to expire. These two acts alone were enough to drive oil prices down and as production rises here in the US oil prices will continue to drop. I think oil will fall to between $40 and $50 a barrel. This will be a boon to American industry if we can get this economy moving again.
Ethanol plants and public resistance to it are growing as some ethanol producers are finding it harder to turn a profit. They would not profit at all if it were not for tax payer subsidies. Bio diesel is still an option as diesel is still far too expensive and the excuses for the high price there is beginning to fail.
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