Saturday, July 19, 2008

Oil Prices Down, But When Will Gas Prices Follow?

WBBM-TV talks about gas prices:
You may have heard that oil prices are way down, but if you filled up your tank today, you know that gas prices are as brutal as they ever were.

As CBS 2's Susan Carlson reports, oil prices have been dropping like a rock from a tall building lately. This month, we have seen the most severe plunge since the early 1980s.

Over the past week, oil prices fell by nearly 11 percent. On Friday, prices rose modestly again, above $131 a barrel, as news of an output cut in Nigeria helped to halt the sharp decline.

"It's been an incredible drop, unlike anything we've seen in a lot of years, and it probably means great things for Chicago consumers," said Phil Flynn, Vice President and Senior Market Analyst for Alaron Trading.

Part of the reason for the drop in prices is a decline in demand. Prices at the pump are so astronomical that some people have just quit driving.
There is certainly no one way that'll solve this crisis, however, I'm OK if there is a need to drill and pump up more oil. Of course oil is a finite resource and thankfully some of us have decided it's simply not worthwhile to drive and are either taking public transit or riding their bikes to get around. Of course it could also be said people are fed up with the high gas prices right now.

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