Gasoline prices have fallen $1 in a month and more than $2 since the all-time high in June. Motorists are collectively saving billions at the pump, cash that would have generated fresh legs for the economy in better times. Full Story »
Posted by Derek Hawkins
Straight forward, informative reporting. The story uses a variety of persons-on-the-street interviews to make its point that there is no joy in Mudvill because eveyone sees lowered gas prices as giving them a small extra sum of cash for budgets that are increasingly strained as things continue to worsen.
In parts of Colorado, regular is selling for about $1.65 a gallon. That means it's time gas up the old Suburban--a fillup which cost $170 when gas was going for $4.25 a gallon and now costs $68 at current prices. What's interesting is that we've become so accustomed to gas at outrageous prices that $1.65 seems a bargain.
The article doesn't say much that's new, but it does a good job of putting gas prices into perspective in relation to other factors in the recession.
Since fuel prices and speculation led us into the final lap into the recession, it is only fitting that they show the way down, but since production of crude averages less than $20 per barrel, there is still ample profit for the oil producers, more than ample.
A good article with a somewhat myopic view on fuels costs and their effects. Explains some of the obvious possible ramifications in analysis of lower costs though a bit early yet to see the ultimate effect. But a good score keeping piece on energy and fuel costs.
The effect of lower fuel prices might be simply that they keep the economic mess from becoming a total wipe out, or may just retard it's progress. If OPEC cuts as much production as they have promised, fuel prices could rapidly leap up once more as the heating season stresses the system. I for one am glad to fill my car for under $100. The savings while significant do seem obscured by all the background noise on Wall Street and elsewhere.
One wonders how much of the previous price of oil was due to demand and how much to Wall Street speculation in oil. If it was Wall Street, they have "got theirs" now. A Gaia enthusiasts would say that the world has acted to kill an organism that was giving it a feaver. The Gas guzzling American car. Ford, Christler and GM are poised on a precipice. It is time for a great leap forward.
Retrieving Comments
