Gas Price Trend Chart
Oil was down to $113 a barrel when I checked earlier this morning. I hope to see it drop back down below $50 a barrel, eventually. The 'oil bubble,' as they've named it, has popped. Gas prices should be coming down, as well.
All the predictions and speculation in the world can't change real supply and demand. I don't know who or what caused the big spike in oil price, but I think the billions of dollars in new profits to the big oil companies might give us a little bit of a clue. Maybe it's been a bit of profiteering in the waning days before their largest benefactor leaves his position of power.
There was no real reason for gas to be over $4 a gallon. Even oilmen were quoted making statements to that effect. I remember Bush going to Saudi Arabia when he first became President to try to get lower oil prices, or so the news reported. Shortly thereafter, gas dropped below $1 a gallon for a little while. But even the Saudis have no control over the current oil bubble price hike.
Pessimists are saying the oil price decrease is only temporary. Optimists believe the price will drop to below previous levels. I believe the reality will be lower oil prices but with attempts by the fuel companies to make bigger profits off of it by not lowering the price at the pump by as much. Consumers will eventually demand the lower prices, though.
Of course, the politics of the future may change all of this. To the victor go the spoils, they say. Whoever becomes our next President will play it to the advantage of his cronies. Senators and Representatives will do what it takes to 'get theirs', too, no doubt. The will and best interests of the American people aren't at the top of their lists, but the market can only support so much before it corrects, no matter what government does.