Oil price falling
October 4th, 2006 by ashish
May be a bit premature, but seems like that the spike in oil prices is grinding to a halt. It is already below $60, and may go down much further. One good trend of this is that the oil cartel OPEC is talking about cutting output so that prices don’t fall. Crazy money-making people !! They used to talk about a stable price range being somewhere between 40-50 dollars per barrel, and here they are suddenly talking about a price of $58 being fine.
This is an incredible amount of profit that they make, and one is not too sure that they really cared about the impact that this sudden spike in prices in the recent past had on world economies as such. One example is the US, where there were lots of reports about people skimping on trips due to the high cost of gasoline. All countries that have industries using petrochemical products as inputs suffered. Now maybe things will get much better.
The other more positive thing in all this: very few of these countries that were fattening on high oil prices are paragons of democracy or worth emulating. In quite a few cases, the extra revenue gave a push to funding to terrorists, or pushed back reform processes, or allowed some swollen-headed weak-brained leader a wide platform to push radical views (supported by distribution of some of this higher revenue to buy favour). Now maybe things will come back to normal if the prices continue falling. If Iran falls in line and hurricane season is limited, there is a very high chance that oil prices will keep on falling.
What should continue is the efforts to reduce dependence on oil from the Gulf through continued measure of increasing ethanol use, finding more local source of oil, using bio-fuels, making industries more efficient and evaluating more alternative sources of energy.
wow…i love whats oing on..i saved so much money in the last days…oil prices have gone down significantly