The Great Oil Price Experiment
For those of you who thought that the high oil prices last year were due to “market conditions”, let me enlighten you. It was big oil’s experiment to see exactly how high they could raise the prices before Americans, and the rest of the world, had enough. They got their answer.
This year, oil prices dropped dramatically with gasoline under $2.00 for the first time in a long time. This was due to market conditions because people slowed way down on their oil consumption, switched to hybrid cars, and began to be very frugal in the trips they took.
Now, in response to that, OPEC is looking to cut production to push the prices back up. They and big oil are not satisfied anymore with $40 – $50 per barrel prices. They think that $80 per barrel is the best price to shoot for. They seem to think that is the best price to keep their profits rolling in while not hurting the consumer… too much.
So, how does it feel to be part of the experiment, my fellow lab rats?
Used by permission from author: www.muskogeeusa.net