Todd L

How Low Can Gasoline Prices Go?

What I don't get is, despite a weakening global economy, how "demand destruction" could be so severe as to chop the price of a gallon of fuel down by over 75%... I mean, we still basically pay the same price for brake pads and tires as we did a year ago, don't we? Sure, we might carpool a bit more, or take the train more often...

I guess all this does is prove to me that speculation in the commodities market had blown the price of oil WAY out of proportion over the last few years.

Are offshore oil rigs still able to sell the oil they drill for at a profit when oil is $30 per barrell?