Wednesday, November 12, 2008

Gas and Crude Prices

Today, in central Ohio, regular unleaded is selling for $1.79 a gallon. Personally, I never thought that I would see prices this low and they may fall even lower. With the economy in such turmoil and people cinching their belts and purse strings, demand will lessen further. How low will the price of gasoline fall in the US?

From Alternative and Saving Energy:

"Oil prices sank under 55 dollars a barrel on Tuesday to strike a 21-month low as fresh recession jitters fanned fears about slowing global energy demand, traders said.

On London's InterContinental Exchange (ICE), Brent North Sea crude for delivery in December plunged to 54.92 dollars per barrel -- a level last seen on January 30, 2007. Brent later stood at 55.94 dollar, down 3.14 dollars from Monday.

At the same time, on the New York Mercantile Exchange (NYMEX), light sweet crude for December tumbled to 58.32 dollars, the lowest level since March 21, 2007. The contract was later down 2.91 dollars at 59.50 dollars.

Prices have now shed about 60 percent since scaling historic highs above 147 dollars in July on mounting evidence of slowing global economic growth and energy demand."

While these low prices are great for my wallet, they are not so great for weaning the world off nasty oil. These low prices further compound our cause because of the auto manufacturer crisis. It is like a double whammy. We need oil free vehicles now but low cost gasoline combined with bankrupt manufacturers makes for a grim outlook on the future. I feel that we need a bailout package that forces the major players to produce alternative fuel vehicles.

What is the price of unleaded gas in your neighborhood?

No comments: