So what if oil went over 90USD?
Oct. 30th, 2007 by AlI was thinking that most drivers don’t really care about spot oil prices , life goes on for many of us especially for people like taxi drivers who depended on their vehicles for a living.They may grumble on about the government lack of power to cap the fuel price.But seriously no one really not the man in the street anyway have much control over the oil price.
So does gasoline prices really reflect on our rising crude oil cost.Latest statstic shown this was not really the case, as consumption are less due to high oil price tend to lead to a not so high gasoline.You see we are still paying more just that it’s lesser than a few months back per gallon.
Why more?It’s more than last year per gallon, people tend to view gasoline prices in short term view for few months most of us anyway except maybe for oil analysts.This is a myopic vision that will not serve us well if oil contiune to move up.Then the gasoline prices will move up faster than what we can absorb.
As oil supplies gets tighter, I wonder how much will the gasoline goes up?5 dollars per gallon , 10 dollars or more?One thing for certain by end of next year, if things do not change, hitting 3 dollars per gallon will not seem to be a crude joke
I just saw a show on Al Jazeera last night where an expert was predicting $110/bbl oil. He attributed this to the expansion of Asian economies raising demand, AND to the first decline in high quality crude output, for the first time since 2006, when it peaked. Only lower-quality oils are being discovered now, he said (if I understood correctly).
What do you think about this?
Eileen
Dedicated Elementary Teacher Overseas (in the Middle East)
elementaryteacher.wordpress.com