Oil Prices Keep Dropping
Proving once again that Democrats who franticly called for hearings into evil oil companies’ price-gouging were far off base, the markets are now responding to a mild, almost non-existent hurricane season and unseasonably mild temperatures. Here’s what’s happening to oil prices:
LONDON (AP) — Oil prices fell about $2 a barrel Tuesday to their lowest levels in 18 months in a market expecting more mild weather and rising inventories in the United States.
Temperatures in the U.S. Northeast have been above normal this winter, curbing demand for heating fuels in the world’s largest heating oil market.
Market watchers are also looking for a rise in U.S. petroleum inventories in this week’s government report.
Light, sweet crude for February delivery on the New York Mercantile Exchange dropped $2.04 to $54.05 a barrel in electronic trading by afternoon in Europe. The front-month contract last closed below $54 a barrel in June 2005.
In other words, prices are dropping faster than you can say “price controls” because inventories are rising and God is supplying warm winter weather in the Northeastern United States.
I suspect that inventories are rising because people are choosing to conserve more. Also, it obviously doesn’t take as much home heating oil to heat homes in relatively warm temperatures.
I predicted here that I expected to see gas dropping below $2 a gallon within a week in the Twin Cities. Now I’m predicting that those relatively cheap oil prices will extend to St. Cloud soon. We’ll see how low it goes.
Technorati Tags: Democrats, Price Gouging, Congressional Hearings, Oil Prices, Market Economies
Cross-posted at LetFreedomRingBlog
January 9th, 2007 at 9:40 am
[...] Cross-posted at California Conservative Categories: Weather, Economy, Energy, Investigations, Democrats | [...]
January 9th, 2007 at 11:40 pm
So how come prices at the pump are still rising? We all know the oil companies don’t have us by the short hairs, right?
That’s not to say I’m in favor of price controls; quite the opposite, in fact. But when’s someone going to come up with a real alternative? Or will the donkeys ever figure out we (the U.S.) have untapped reserves as great as anything Saudi Arabia ever dreamed about, and it’s just sitting there waiting?
I wouldn’t count on it. They can’t see past the tail someone pinned on their face.