Oil is down, how far will it go? For how long? Here in Boston area, fuel oil C.O.D is 2.19. 3 Months ago, the markets
were telling us that we did not matter, the rest of the world is using more and more. Then look, we trip, the world folds.
8 weeks? Oh and our beat up dollar was worthless. Things get rough, everyone screams, and the US dollar rises.
" Who you gonna call?"
Lots of reasons why oil jumped, most of it market manipulation allowed to happen because of a few key but obscure
"deregulation" moves. The Enron gift that no one noticed....until it was too late. Well some noticed.....and went to the
bank. The world economies that 8 weeks ago were on fire, are tanking, ours included. Why? Energy costs sucked them all
dry. The run up in the last 4 years drained the world economies. We have seen it before, and we are seeing it again.
Oil may stay cheap for a while, at least a year, maybe two. But as recovery starts, and it will( we may have already bottomed), demand will rise, and so will the price. How far and fast? What ever the market will bear. It is funny to see
oil go from 147 bl to 52 bl, in 4 months. Because of what? Maybe a 10% decline in use? Please 10% drop in use equals
60+ % drop in price? While this spring a "projected" 2 % increase in use lead to 100% increase in price ? The funky math
shows there is more at play than " supply and demand".
Bottom line, for me anyway, frugal is good, during both fat and lean times. It is the oldest of all American virtues. Nice
to see it come back, like a fricken Hurricane. Oil needs to drop to 1.30 gal to equal my cost to heat with coal. I like my odds
of saving money this winter, and many more to come. The drop does allow you to shop for bargains for equipment this summer. There will be lots of machinery around looking for a home. Coal On !