So , now, many Americans are enjoying the cheapest gas prices in years. I heard on an Internet radio show yesterday, that in certain areas, gas is under a dollar a gallon right now. Not so in my town, it's still around $2.30 and up for Regular. Maybe, 'cause I can see California from here!
But here's my point. Part of the ongoing slaughter in world oil markets, is a side effect of such low prices. Oil drillers and producers in some regions, are getting killed. Supposedly, some kinds of "sour crude" with a high sulfur content, are now upside-down in the wholesale markets. Meaning- It costs more to extract and transport these grades of oil, than refiners will pay for it. The supply of oil, currently in a glut, depending on the market, will have to contract. The Saudi's want to kill off the US shale oil industry, for example. Oil that was profitable to extract, ship and refine, when prices were north of maybe $50.00 a barrel, isn't now. I'm no analyst, but when the bottom drops out of any market, things will get "interesting". If you know someone who knows what the future holds for oil and Gasoline prices--Ask to borrow their Crystal Ball!!
What goes down, will go back up! Enjoy the Party for now as long as it lasts. It won't last forever. Money saved on gas today- can help to get a car or engine Grooved to be ready for the future.
Just sayin'.
Tracy G