The Volatility Of The Oil Market And Our Gas Prices
The NYSE has fallen for the sixth week in a row, and finally dipped below 12,000. Although I’m not all that surprised, since I keep trying to figure out what financial statistics made it grow to that extent in the first place, it seems that the never ending worries about gas and oil have a lot to do with it.
This week OPEC, in one of those rare times when everyone didn’t quite agree and come to a consensus, failed to vote unanimously on the prospect of generating more oil so that the world economy could have a chance to stabilize by bringing down the price of oil naturally. Our “friends” Iran and Venezuela both declined, yet supposedly Saudi Arabia is going to go ahead and do it anyway.
From my understanding of it all, whether there are larger oil reserves or not, the price of oil seems to be decreasing anyway. Most of us in the United States have noticed that our gas prices have been coming down. In my area, we went from barely over $4.00 some weeks ago to an average of around $3.75 now, and if you have some kind of discount card or belong to a discount chain like BJ’s Wholesale you can get your gas even cheaper.
Why are gas prices down so much? It seems that when Americans get tired of being pushed around we find other ways of doing things. Thus, the demand for gas has dropped, which probably means there will be less travel this year unless people take trips to locations closer to home. And, as the demand drops, those countries with higher gas prices will find it harder to sell their oil because they won’t have enough produced, which is what Saudi Arabia is counting on for positioning.
All of this is confusing, and I guess the best part for most of us comes in lower gas prices as we get ready to head into summer.