oil is ridiculous and the economy is still a mess. Oil speculators are again driving the price up inflatedly. I expect oil to hover between 50-70$ a gallon, which I believe is fair price. The price at the pump (ie California) should remain under 2.50 which would require the barrel price to be at about 60. Thats is a fair price, of which OPEC members still make money (contrary to news and those countries leaders). Its just places like Iran and Venezuela has OIL as their main source of income, and their bloated defense and antagonistic spending is fueled by that. Seriously the midwest SHOULD be around 2.00-2.25$/gal and where I live in CA where its always more expesnive should be at or around 2.50
But if oil speculators keep up their manipulation we could head to around $100/gal and then another crash and complaints from OPEC.How will crude oil and natural gas prices behave for the rest of 2009?
Poorly. We have enormous supplies of both in inventory. I expect natural gas prices to stay low. And oil prices to drop sharply in the near future. Its all speculation with oil. Just like last year.
prices will fluctuate with the weather and geopolitics as usual. Increase in summer, decline slightly in fall, increase in winter.
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