Thursday, July 17, 2008

Oil Dropped to $130

At last it seems that some of the air is being let out of the oil bubble .

The U.S. government's Energy Information Administration said crude inventories rose by 3.0 million barrels in the week ending July 11. That confounded market expectations for a decline of 2.2 million barrels. "The inventory report essentially indicated oil demand in the US is just very poor," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.

So it seems that $147 a barrel for oil is now the very top of the market for the time being. You can probably see gas prices start to slowly go down in the next few weeks as well. It would be interesting to see what people start to do with the extra cash that was previously going to gas prices. Will they go back to buying full sized trucks when gas comes back to $3.00?

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