I’d say the answer is still no, but today’s market reaction to OPEC’s production cuts is a little surprising. Experts say that demand continues to fall in the U.S., which I find a little puzzling. I wonder if the decline is actually demand-related, or if there’s been a bigger shift to fuel-efficient vehicles.
One of the Midwest’s biggest oil wholesalers doesn’t see a floor in the falling oil market, either. In a conversation this week about gas prices falling under $2, QuikTrip spokesman Mike Thornbrugh said, “You know what? It could happen.
“And if you’re asking if QuikTrip would be happy if that happened, the answer is yes.”
6 Comments
Is it a true drop in demand or is it the regained strength of the dollar that is driving the price down?
Most evidence points to the regained strength of the dollar, FAF.
BOTH. The global recession is lowering demand worldwide AND the dollar has recovered a bit against the Euro.
I’ve talked to other Gas Station owners and they all said to enjoy this, as they feel the price will go back over $4 early next year.
Well, when you look at the economic condition of the world and the recovery of the dollar, there’s only one factor that could stem the tide of oil’s decline:
Coordinated speculation.
The chances of that happening, unregulated, are probably something we’ll know more about the morning of Nov. 5.
I’d love to see a concerted effort to develop wind power. And a great assist to that would be to build turbines here in the US instead of importing them.
Gee – I wonder where we could find technology to do so – strong, light-weight composites, aerodynamics …