Posted in: Gas Prices,
by Patrick DeHaan on Apr 12, 2011 02:10 PM
Think its impossible? Think again. Oil prices today are on the brink of collapsing. You may remember when this happened in 2008 when oil went from $148 to $30/bbl. While we won't see nearly the correction in prices as we did in 2008, there is some light at the end of the tunnel for motorists, a situation that's just developed in the last 48 hours.
It started with the talk of a cease fire in Libya Monday. Tuesday brought a firm warning from oil heavyweight Goldman Sachs, perhaps better known as a firm heavily vested in oil and petroleum. Their warning was that oil markets may be overbought, which, in addition to the possibility of a cease fire, added downward pressure on oil prices.
Just after Goldman Sachs, the Commodities Futures Trading Commission and the Federal Trade Commission released a statement saying they were joining forces to share intelligence to curb manipulation in markets. With these pieces of news, we've started this week seeing oil prices shed nearly $8 per barrel and wholesale gasoline prices have dropped over 10-cents per gallon.
Another factor that could help ease pressure on prices is if tomorrow's Department of Energy report shows large increases in gasoline inventories AND a drop in demand for petroleum. That would be a trifecta! Will we see oil prices drop? It certainly appears we're on the brink!