By Douglas V. Gibbs
I welcome the lower gas prices. As a public speaker, and instructor, I do a lot of driving, and with prices hovering around three bucks a gallon, it is welcomed relief at the pumps. According to Bloomberg Business, oil is below $35 per barrel, a price not seen since 2009. Markets are opening up to American oil, and OPEC nations are abandoning placing limits on production in a mad dash to hang on to their market share.
Prices did rise 2% on Monday, but that doesn't mean that prices have reached their lowest and are now on a steady march upward, again. Supply and Demand is in play here, and right now we are being told there is an oversupply that is driving down prices. Reuters claims we are reaching 11-year lows, and it may not be over, yet.
Prices did rise 2% on Monday, but that doesn't mean that prices have reached their lowest and are now on a steady march upward, again. Supply and Demand is in play here, and right now we are being told there is an oversupply that is driving down prices. Reuters claims we are reaching 11-year lows, and it may not be over, yet.
The dropping prices may be great for consumers, but they are devastating to investors, and countries who are very dependent upon revenue gained from the sell of oil (like Russia, Venezuela, and Mexico).
One wonders, however, aside from the theories offered by the experts, why this is happening. Why have the Arab Nations eliminated their limits on production? Has President Obama made a deal with them? Has he been acting in a manner that supports the Islamic jihad in return for lower oil prices so that he may look better to the voting public? Is this a ruse to ensure the next inhabitant in the White House is a Democrat? Sure, it's all speculation, but it does make one wonder.
-- Political Pistachio Conservative News and Commentary
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