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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]

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    • 1 Second Ago
      • 6 Years Ago
      What if the US Dollar gains strength? What happens to the oil prices then?
        • 6 Years Ago
        The US dollar has been gaing strength over many other currencies(particularly the Euro it is normally compared to) during the past 6mos or so. That plays a role into why oil prices are dropping.

        Since oil is priced in US Dollars, as the dollars are worth more, they buy more oil and the oil prices generally fall as the US Dollar strengthens.

        Obviously, far more goes into oil prices than that, but the strength of the dollar is an important factor.
        • 6 Years Ago
        Sorry, it's really been gaining strength for about mid-July, not quite 6mos, but close.

        That also seems to coincide with about the length of time that oil has been dropping. The highest close for the price of oil was $145.18 on July 14, 2008.

        Looking at this link below from MSN Money, you can see the chart of the Euro vs. the US Dollar over the past year. Notice what happened right around July and is continuing now.

      • 6 Years Ago
      Oil prices that are too low could be a bad a thing. In the long run we might end up paying more for the stuff.
      Oil is mostly produced in countries ran by less than democratic governments that are sitting on a demographic time bomb (rapidly expanding population and poor infrastructure to provide jobs, housing, education, health services, …) .
      The only reason why some of the biggest oil producing countries have not experience (major) upheavals or revolutions is because some (very little) excess cash was pumped back into the form of subsidies to the people to keep them fed and clothed (the rest was gleefully embezzled by public servants).
      At the new low price level it will be harder to feed the masses and these, now, hungrier people might chose to topple their governments, or at least move from low intensity internal conflict to something bigger that would disrupt if not completely stop the flow of oil to our "Western Democracies."
      The world is barely able to police Somalia. Should major Middle-Eastern, Asian, African, or South American countries become failed states and become unable or unwilling to export their oil in the ensuing chaos there will be very little the rest of the world could do to get at it.
      If the oil shortage becomes acute enough, multiple theatre wars could not be avoided and before you know it we are all driving supercharged V8 Ford Falcons XB, calling each others Mad Max, wearing leather suits, and end up chasing oil tankers.
      • 6 Years Ago
      Some kid today told me his parents were going to get him an Escalade EXT. "Why?" "'Coz, dude, it's awesome! And gas is cheap."
      • 6 Years Ago
      I will continue to buy my gas from American companies who sell refined crude from north American sources. It does exist and prices are almost always the same as everyone else. Who are the best?

      Kwik Fill/ Red Apple/ Keystone/ Country Fair
      Flying J

      Who is American but may sell middle eastern oil? If you don't have any of the above try these:

      Valero (Shamrock, Beacon, Ultramar)
      Marathon (Pilot, Speedway)
      Chevron/ Texaco
      Exxon/ Mobil
      Conoco/ Phillips


      Citgo (Hugo Chavez and Venezuela)
      LukOil/ Getty (Russian)
      Shell/ Motiva (Netherlands)
      BP/ Amoco (Great Britain)
      Total/ Fina (France)

      By all means buy what you want but why not check out those at the top of the list first?

      • 6 Years Ago
      Just completely filled up my LR3 for ~$32. What a bargain! Time to start road-tripping.
        • 6 Years Ago
        Yeah!!! Keep pissing away those precious resources...your kids will just love you for it!
        • 6 Years Ago
        Somehow, I think that oil (along with other precious materials) will no longer be in the picture when my kids will be old enough to drive i.e. new technology and other alternative fuels. In the meantime, I'll just take advantage of what is possibly the only benefit to this withering economy.
      • 6 Years Ago
      $1.50/gallon here.
      • 6 Years Ago
      I'm outfitting my Hummer with a 50 cal as we speak because this is going to be a rough few years
      • 6 Years Ago
      With prices where they are now, I can afford to buy a few barrels myself... maybe I should stock up (?)
      • 6 Years Ago
      sooooooooooooo when will our postage stamps dropped back in price??? or just any postage in general.
        • 6 Years Ago
        or all shipping costs and airline fees
      • 6 Years Ago
      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?
      • 6 Years Ago
      YES!!! Time to fill up my Range Rover and go crazy!!!
      • 6 Years Ago
      Gas just down the street from me (northern Canada) just dropped down to .879 cents/litre. It's crazy whats going on. Maybe the low gas prices will help the auto industry... just a dream
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