It was holding pretty steady at $110 a barrel, but now has dropped down. Gasoline futures have fallen from $2.70/gal to $2.17.
So, what is going on? There's enough of the oil production market that is nationally-controlled and not part of the free market. Which causes me to wonder if the impact of lower oil prices on the Russian economy is not a bug, but a feature.
The boom-and-bust cycle in our domestic oil business is what it is. You might remember when the price of oil fell so low in the `80s that one could buy a house in Houston for little more than pocket lint.
1 comment:
I hear it's because people are no longer worried about Libya going off line. They're not the biggest producer, but demand is so close to maximum capacity that small perturbations can cause big swings.
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