Meanwhile oil prices are sinking well below the $100 threshold.
Oil prices fell to an eight-month low below $90 a barrel Monday on speculation that the spreading financial crisis will exacerbate a global economic slowdown and cut demand for crude oil.
Significant gains by the U.S. dollar against the euro also contributed to slumping oil prices. By midday in Europe, light, sweet crude for November delivery was down $4.03 to $89.85 a barrel in electronic trading on the New York Mercantile Exchange.
Now that oil producers have found that people and governments will pay for overly inflated oil, OPEC may “defend” $80 per barrel oil.
Iranian Oil Minister Gholam Hossien Nozari said Saturday that it would be “unsuitable” for both producers and consumers for oil to dip below $100 a barrel. He called on fellow OPEC members not to pump too much oil and avoid a drop in prices.
“OPEC has signaled it may defend $80,” Shum said. “There’s uncertainty over what OPEC may do.”
Righty-o. Actually, it is “unsuitable” only for producers and speculators. There is no reason why consumers should want oil at $100 per barrel, that translates into more cost at the pump. In Nozari’s statement, consumers should be replaced with “speculators” for it to actually make sense.
The response of people world-wide should be to continue to use less and less gas, and use alternative fuels as often as possible.
Funny how the lower prices of oil on the market are not being reflected at the pump.
Meanwhile, natural gas prices have also been decreasing. This is after my local utility had announced an 11% increase starting October 1(note, that’s on top of a 20% electricity increase!). Now, if natural gas prices continue to decline, as it has been, will KUB pass on that savings to their customers???? Inquiring minds want to know!
