The end of fuel economy in America?

[ketel0ne]

Analyst predicts plunge in gas prices
By Kevin G. Hall

McClatchy Newspapers

WASHINGTON ? The recent sharp drop in the global price of crude oil could mark the start of a massive sell-off that returns gasoline prices to lows not seen since the late 1990s ? perhaps as low as $1.15 a gallon.

"All the hurricane flags are flying" in oil markets, said Philip Verleger, a noted energy consultant who was a lone voice several years ago in warning that oil prices would soar. Now, he says, they appear to be poised for a dramatic plunge.

Crude-oil prices have fallen about $14, or roughly 17 percent, from their July 14 peak of $78.40. After falling seven straight days, they rose slightly Wednesday in trading on the New York Mercantile Exchange, to $63.97, partly in reaction to a government report showing fuel inventories a bit lower than expected. But the overall price drop is expected to continue, and prices could fall much more in the weeks and months ahead.

The how and the why are at the link:
http://seattletimes.nwsource.com/htm...nsumers14.html

[omgwtfbyobbq]

Wasn't the introduction of ethanol to replace MTBE what drove the cost of gasoline up? If anything that seems like it's the limiting factor... Not crude.

[ketel0ne]

Maybe it is all just made up BS?

[omgwtfbyobbq]

[Brian D.]

I'm not buying it. I'm still calling this a bit of overexuberance. This is what you get when you mix a (basically) hurricane-less season with the fact that the U.S. just struck a little bit of new oil in the Gulf. Then add in the fact that, seasonally, we tend to get a little bit of a pullback in oil (gas prices) upto and around Labor Day. Driving season is over. Big deal. I say oil heads back up. I doubt if we'll see $3/gal again (sorry, west coast...I know you're all still unfairly up around $3/gal anyway) before the end of the year. It'll creep back up though. -my $.02

[philmcneal]

now is the time to buy that fuel efficient car!!! The price is right till another spike kicks in.

[ZugyNA]

http://www.spectrumcommodities.com/e...charts/cl.html


Down into Dec/Feb/March?

Slowing world economy.

Current admin has given up starting WWIII for now?


But I wouldn't get too complacent though....many oil analysts expect $100 oil eventually. Growing world population...increasing standard of living in China...India...etc? Peak oil?

The writing is on the wall....

[schmeep]

is it wrong to hope for high oil prices?

[ketel0ne]

There are many reasons for long commutes. Our reason is this our house and land would cost over $1 million within 15 miles of our jobs. We commute together and our house and land was less than $150k on the water no less. It would take alot of gas even at $3-5 per gallon in the Yaris (60 miles each way) to make up $850K

[Silveredwings]

Wait...If this is the end to FE in America, when did it begin?