The price of West Texas Intermediate crude oil is given this morning (on Yahoo! Finance) as $87.69. It’s not the first time it’s fallen below $90/barrel, but it’s worth celebrating. Of course, here in FantasyLand (the Washington DC area is where) — the prices at gasoline pumps haven’t really fallen yet.
But they will. Especially if crude makes it to the “wrong” side of $80 . . . !
A Bloomberg.com article a few weeks ago noted that:
Oil demand may reach a plateau worldwide by the end of the decade as cars, trucks, railroad engines and power plants increasingly use natural gas instead, according to Citigroup Inc. analysts.
AND incliuded this chart:
BUT WAIT:
The long-term view isn’t driving oil prices (or anything else). There is no long-term view in markets, and perhaps there never, ever has been. How else explain that the price of Apple’s stock has fallen from $700 to $400? Which price was/is “Right” about the future? Demonstrably, one shouldn’t have bought at $699 or $635 or $573, etc.
What’s happening right now? A gigantic bend DOWN in the prices of a lot of stuff. Below, the chart of COPPER, which shows what’s happened in the past month:
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