Badger Blog Alliance

Sic Semper Tyrannis

Wednesday, August 06, 2008

Re: Oil Drops Again

No kidding on that last line. Still waiting for the corresponding drop at the pump. Even while oil prices were falling, the price at the pump in Racine and Kenosha jumped 10-15 cents a gallon over the past two days.

I have been paying attention to a number of energy investing & pricing sites since June. Back in June oil dipped to around $122/barrel and the lowest gasoline was in the Valley was about $3.85/gallon. Now, we are back at that level, a touch lower, and our gas prices in the Valley vary between a low of $3.70/gallon to $3.79/gallon, with the prices drifting up.

I have been hearing repeated reports total miles driven here in the US is down for the second year in a row, something that has not happened in a good long time, that is demand is being destroyed. However, as I noted here earlier people in developing economies are often insulated from the prices and reports I have heard, indicate gasoline is being diverted to those nations (not all nations heavily tax gas some subsidize it) hence gas supplies are still tight.

I suspect oil and gas will keep falling price until late winter when we the ratchet will click a couple of more times.