The national average price of gasoline has fallen to $2.22 and the price of a barrel of oil has fallen to near $56.
Now, with the slowing global economy, will oil prices continue to fall? Some factors point to yes: 1. U.S. promises to drill more may flatten oil prices. 2. Increased ethanol production cuts down on gasoline demand. 3. If people don't have additional money because they're saving, the less they spend on gas. 4. If you're unemployed, you're not commuting to work every day.
But other factors point otherwise: 1. Obama wanting to restrict domestic oil drilling. 2. Cheaper gas prices may encourage people to travel just from the low prices. 3. Saudi Arabia has stated that it doesn't want oil to fall below $50. A drastic cut in oil production could spike prices. 4. A terrorist threat in the Middle East could cause a price spike.
So, where will oil be in six months? I'd guess around $75 with gas around $2.80.
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