Holy shit Batman! I just checked gas buddy. The lowest price in Missouri (my state) is $1.55 at numerous stations. OK hit $1.53. This is getting a little crazy.
Quote from an article --
"Back in 2005, the US had to import 60 per cent of its supplies from abroad. By 2014, however, the USA only needs to import 30 per cent of its oil consumption. The oil revolution is paying off: too much oil is now on the market, causing prices to drop."
And new pickups and SUVs are now averaging over 25 mpg on the highway. Wow, seems like the USA will be energy independent way sooner than anyone is predicting? I'm guessing that most of our imports are coming from Canada as well, so dependency on Oil Sheiks will no longer wag the dog.
You seem to think this will last indefinitely. I doubt that is the case.
No idea how long the current pricing will last. The dominos seemed to be lined up against any significant increase in the near term. Doing my part to reduce usage.
Will $40 per barrel be in the picture soon? What do you see in your crystal ball Arebelspy?
Historically cheap oil is more the rule than the recent decade of high prices.
From Feb of 1986 oil was $16 a barrel to Jan of 02 it was $18. As recently as Dec 08 it was $30.
So one can easily imagine, given the US ramp up in production and world glut, that $48 a barrel for an extended period would not be unprecedented. (I'm old enough to remember 19 cents a gallon for gas)
Bad for global climate change, I know.
Another thing to consider is the impact oil has on all products. Most products today have an energy input, a transportation cost and many products are made from petroleum derived plastics.
It is possible that we will see an increase in real wages this year with near zero inflation or even deflation of many goods. Oil prices are setting the stage for an interesting year.
