Oil vs. Gas

It is possible that oil prices will drop well below $100 a barrel.  It's not good news though.  For that to happen, the entire stock market would have to crash.

My guess is that gas prices won't go down proportional with oil prices. 

Oil companies take in record profits and I think they're going to continue to take in as much as possible.

Part of this is the declining value of the dollar.  Of course, revenues are going to go up when the dollar goes down.  It takes more of these less valuable dollars to buy the same amount of gas. 

In addition, the oil companies know that oil is on the decline.  Time to milk it for what it's worth before people make the change to some other energy source.

Comments

[mark]

wait, you are trying to tell me...

oil companies are greedy and are not looking out for my pocketbook?

WOW. just WOW

[Success Warrior]

Sort of.

What I'm saying is that we have become dependant on oil but supply going down and prices going up, people are finally taking a serious look at alternatives. Oil companies are going to make as much as they can before they go out of business.