The cause is two-fold, he said: the price of oil has fallen sharply recently due to over-production in Saudi Arabia and falling demand due to Europe’s economic slowdown is also a factor, said Verleger.I filled up yesterday at $3.36, down about 15% from $3.90 back in March. If it continues, it will boost the economy by freeing up money for discretionary spending. And it would be good news for someone's re-election bid...
“Saudia Arabia really runs the oil market ... and the Saudis right now have several reasons for essentially overproducing, or producing more than the market needs, and pushing prices down,” said Verleger.
25 June 2012
Gasoline prices could drop to $2.50/gallon
One man's opinion, as expressed by an energy analyst speaking on Bloomberg TV.