Petroleum Prices Stay Low
Petroleum prices are still low, might stabilize below $40 a barrel, despite OPEC cutting production. Everyone involved has to be hurting to some degree. OPEC isn't getting revenue,
Russia and Chavez are REALLY hurting, either because of the cuts or low prices. I'm betting that some will try to take advantage of others by actually increasing their production on the sly to make up for that shortfall.
Why has the price fallen? Because of the economic slow-down. Interestingly, gas prices are below the last big recession's prices. In 1981 I was paying $1.56 a gallon but that $1.56 then is equivalent to $3.72 now, about what I was paying three months ago. The $1.59 a gallon I paid yesterday would have been $.68 in 1981 and would have been very welcome then as it is now.
What is the effect of this? It is moderating the pain folks feel in not getting pay raises (unlike Congress) and perhaps making hunting a new job easier for those who've been laid off.
Labels: Politics
