Don't get too excited in that $.50 drop in gasoline lately. OPEC just announed that it will be cutting production "slightly". Sarah Palin will have OPEC on her "to do" list.
Seriously, though this is good and bad. If prices continued to fall insanely, we could have another oil bust on our hands. That is not necessarily good for the economy any more than the meteoric rise of oil. In reality, it wasn't really in OPEC's interests either to have that meteoric rise. One of the issues there is that the price of oil was making many of those states, who subsidize gasoline to their constituents, considerably less wealthy due to the pay outs.
$100/bbl was predicted as the high water marker in 2006. These predicters don't lie, but they were fudged out a little by the speculators grabbing everything they could.
Seriously, though this is good and bad. If prices continued to fall insanely, we could have another oil bust on our hands. That is not necessarily good for the economy any more than the meteoric rise of oil. In reality, it wasn't really in OPEC's interests either to have that meteoric rise. One of the issues there is that the price of oil was making many of those states, who subsidize gasoline to their constituents, considerably less wealthy due to the pay outs.
$100/bbl was predicted as the high water marker in 2006. These predicters don't lie, but they were fudged out a little by the speculators grabbing everything they could.
