A simple guide to the sudden collapse in oil prices
The news in the markets is dramatic: Prices for West Texas Intermediate crude oil -- often used as a benchmark of U.S. prices -- dropped below $70 per barrel for the first time since 2010. This continues a dramatic price slump for oil, which cost over $100 per barrel as recently as June.
The shift has markedly reduced average U.S. gasoline prices (which are now well below $3 per gallon) and may bolster the U.S. economy heading into the Christmas spending season -- by putting considerably more money in consumers' wallets.
But what's driving this slump -- which is quickly becoming the single most important economic story of 2014 (and maybe 2015)? There's one short-term reason and three longer-term reasons.
http://www.washingtonpost.com/blogs/wonkblog/wp/2014/11/28/a-simple-guide-to-the-sudden-collapse-in-oil-prices/
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Those shutdowns, along with other things, helped keep gas high, and profits for the companies that sell the gasoline. I also read that there was a huge demand for diesel in the last few years and since diesel is a byproduct of making gasoline, there became a huge stockpile of gasoline.
I also find it strange how for years and years now we have heard that oil is coming to and end, and production was down thus increasing gas prices. Doesn't seem to be that way now. There is the law of supply and demand. When oil companies keep supplies low, demand goes up as well as the price. It's been a con game for decades, oil companies profits go through the roof, and the average person pays through the nose for their product. Sounds more like greed to me.
for our President to "give in" to PTB on the right and say he is now ready to approve the pipe line, once enough private investors can be found.
