Nov 28 2011

Good news on gas prices

And I’ll make it short and sweet. With Europe softening toward mild recession and the US stuck in permanent high unemployment, the demand side of the equation is unlikely to ratchet up anytime soon. As long as supply is stable this leads to lower gas prices between now and the end of Spring. This is a seesaw: the worse the Euro recession is and/or the economy here, the lower gas prices tend to go, so it’s not exactly good news for everyone.


  1. 1

    I don’t necessarily see lower US gas prices as a good thing…except politically, I guess.

  2. 2
    Stephen "DarkSyde" Andrew

    It’s a good thing in the sense that energy prices are the underlaying parameter for all economies. Gasoline is the most visible aspect of that for most people.

  3. 3

    High oil prices (especially rapidly rising oil prices) tend to be correlated with the onset of economic difficulties. Economic difficulties cause oil consumption to decline, resulting in falling oil prices. Falling oil prices contribute to economic recovery, which causes oil prices to rise. Rinse and repeat.

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