Oil may hit $35/barrel in wake of auto bailout bust
With the U.S. Senate denying the Detroit 3 relief plan, it looks like oil prices might continue to tumble. Our sibling site BloggingStocks is predicting barrel prices might drop as low as $35 as a result. This comes on the heels of predictions of higher prices in the near future.It had been thought that OPEC and possibly Russia would be curtailing production, which might have led to higher prices, but if the U.S. auto industry collapses, demand for oil could plummet. That would result in even lower oil and gas prices.
In fact, oil prices started dropping Thursday night as soon as traders heard that Senate Republicans had blocked the bill, with barrel prices checking in at $44.76 as of Friday morning. We just saw regular unleaded for $1.59/gal at a station down the street this morning and thought we had woken up in 2000. Can sub-$1 gas be far away?
[Source: BloggingStocks]
Reader Comments (Page 1 of 3)
pmiddle5 7:08PM (12/12/2008)
What will be even better is if this bailout mandates such and such gas mileage by a much sooner date then we'll continue to use less and it wont be such a hot commodity anymore. Down with the oil barons!
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homunculus 7:13PM (12/12/2008)
highly doubtful. with our economy and gas prices going lower we'll be driving technicals with mounted .50 caliber machine guns in a year--if you're lucky. the rest of you will be human chattel.
Farris 7:16PM (12/12/2008)
Can we also get DIESEL prices to come back down to a reasonable level?
I'm still paying 2.65 a gallon to fill up, despite RUG being 1.75 at the same station (lowest price in town).
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HotRodzNKustoms 7:17PM (12/12/2008)
I'm outfitting my Hummer with a 50 cal as we speak because this is going to be a rough few years
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SPF 7:40PM (12/12/2008)
May I suggest http://www.youtube.com/watch?v=7Nug5FZgxuk
HotRodzNKustoms 7:45PM (12/12/2008)
Oh hell yeah! I'll take two!!!
pmiddle5 7:50PM (12/12/2008)
How are you guys affording the ammo!? This is insane I'm gonna have a .22 mounted on my bicycle getting shot at by you fools
anoldbikeguy 10:13AM (12/13/2008)
@spf - is that the new special edition 'Southern Republican Hunting' Yukon?
THE BIG KAHOONA 7:20PM (12/12/2008)
Now if we could just muster the courage to force term limits on those mealie-mouth bastards in the house & senate !
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Wayne 7:20PM (12/12/2008)
"Can sub-$1 gas be far away?"
In you asked me this question in July, I would have asked you if you were missing a chromosome or two.
God I love the "experts" that once said $200/barrel and $6/gallon by Christmas.
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moyoi 9:09AM (12/13/2008)
im sure they didn't see us tanking the economy either.
montoym 1:11AM (12/15/2008)
Well they should have right?
It seems that the banks, auto manufacturers(seemingly only the domestics though), President, Congress, etc were supposed to have seen it coming if you listen to enough people on here. Why would the "experts" be held to a different standard?
Jason 7:21PM (12/12/2008)
$1.50/gallon here.
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Mobius_1 7:34PM (12/12/2008)
Soccer moms rejoice.
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Smegley 7:41PM (12/12/2008)
Just paid 1.39.
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Zeus.:God 3:19AM (12/13/2008)
$1.22- BOOYAH!
Eric Bandholz 7:55PM (12/12/2008)
If we are selling less new cars, and new cars get better miles per gallon. How does this mean the demand for oil is going down? I can't imagine there are really that many new drivers on the market that are just going to decide not to get a car. I could be wrong; what'da I know?
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Artie Lange 8:15PM (12/12/2008)
Because of the contraction in the credit market, many are unable to get financing for new car purchases. No credit, less car purchases. Less car purchases, less oil consumption. Further, people have not forgotten about $4 gas; use of public transportation has not declined since it began to increase during the summer. All of these things are good.
LR 7:56PM (12/12/2008)
Just completely filled up my LR3 for ~$32. What a bargain! Time to start road-tripping.
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noz 1:39AM (12/13/2008)
Yeah!!! Keep pissing away those precious resources...your kids will just love you for it!