We are going into Summer, when electricity and gasoline use typically climb, driving up the cost of oil. As a result, the price of oil falls $20/bbl in a couple of weeks? This summer, the people of the US are not doing much leisure travel because we're watching every dime. But here's what I think is the real reason:
Speculation. I've frequently stated that most of the price of oil is speculation. Yes, most of your price at the fuel pump is driven by speculators. Oil should be around $40ish right now per barrel, but traders have to do something with clients' money. So they invest in something everyone needs: energy. When everybody buys something (oil futures) and they take increasing price as a good sign to buy, the price goes up. Problem is, traders are a spooky lot of blokes. They see that Europe, the US, and maybe China are headed down hill, and they're scaring out of oil (for now).
Enjoy the extra couple of dollars that are not going into your fuel bill while you can. Preferably use them to pay off debt.
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