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The price for a barrel of crude oil briefely dropped below $60 for the first time in over six months. Even though the price was unable to hold below $60, oil still finished down $1.20 and finished the day at $60.47.
With many reports showing that levels of crude oil and gasoline inventories are continuing to rise, it appears that the equilibrium between supply and demand has yet to be reached, which could signal the continued free fall of oil.
The one item that may buoy the price oil is the possibility that OPEC may begin to cut output if the price of oil can hold below $60 per barrel.
All things considered, the 20% reduction in the price of oil has been a relatively good thing. However, one thing that does concern me is the fact that a major factor in the reduction in the price of oil is the growing concern of slowing economic growth in the United States.
Push comes to shove, I would much rather pay $3.00 for a gallon of gas than face the possibility of an economic recession.
In the meantime, I’m not going to look a gift horse in the mouth, and will continue to enjoy filling up my car for less than $25.