The price of a barrel of Black Gold has fallen near $57 as I write this, with some analysts forecasting a drop well into the $40s. That can’t be good news for ethanol plant developers.
How low do you think the price of crude will go? What’s driving the decline? Is it the economic crash? Have speculators turned elsewhere?
And perhaps more interestingly, what impact will any government strings – MPG requirements, et al. – on the auto industry bailout have on the price?
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Didn’t the Federal government impose requirements for use of a certain amount of ethanol, with guaranteed price support embedded in the cost at the pump?
You will see gas prices drop to and remain at $43.00 a barrel, this will continue untill January 09 when Obama is sworn in, and with the honymoon a rally will appear bouncing prices to about $52.00 a barrel. By march the slip will plummet oil to its historic lows in modern times of at or about $39.00 a barrel. This may seem good for the United States, but with the OPEC nations struggeling to meet their National budgets, the dollar will be in jeprody of falling from the currency used to purchase oil, replaced instead with the Euro. That rally will be shortlived though as the United States is the first to rebound from the ressesion, aided by low fuell prices. By July 09 the US econimy will be the leader again in global economys trading largly in US dollars. The world will look much different by 2010.