The latest news out of the USA regarding crude oil prices is that this is the lowest crude oil prices in a decade. Despite the fact that the oil prices are falling, many people still believe oil prices can rise again very soon. This is the same sentiment that created the “recession” in the first place.
Oil prices are already down by 20% from where they were when we went to war in Iraq. Since there is no oil anywhere near the USA, the prices are going to keep falling for awhile. In fact, many people believe we can’t have a stable oil price in the 21st century.
The thing about oil that people get most wrong about oil prices is that it’s not really oil. It’s a commodity, and prices are determined by supply and demand. The fact that oil prices are falling is a result of companies cutting their production back in response to the drop in demand. The fact that oil costs are falling is what the oil companies are trying to do, because they are under pressure to cut prices.
I think it should be the other way around. It’s the oil companies that are under pressure to cut production, not the oil prices. If oil companies cut back on production, it would be the oil prices that would be falling, not the oil companies.
I think the oil companies are trying to cut back on production because of the falling oil prices. Lower oil prices should have made the oil companies to cut back production, because they can’t make as much money to pay their employees. As a result, they are under pressure to cut back production to make up the difference. The falling prices will inevitably make oil companies cut production again, which will lead to the next oil price drop.
The fact is, a decline in crude oil prices will actually lead to higher prices for gasoline, because the companies are going to cut back again. The companies are so desperate to keep their margins to a minimum that they will cut production again in order to keep their margins. The oil companies are going to try and cut back again because of the falling crude oil prices, which will lead to more higher gas prices.
It’s a little confusing that the oil companies are cutting back on production in such a way, but it’s generally true that companies will cut production in order to maintain their margins. For example, oil companies are going to cut back on drilling because there is a falling demand for oil, and that lowers the price of oil. But then companies will cut production again in order to keep their margins, so it’s a cycle.
The fact is that oil companies are cutting back production for both reasons. First, because of falling oil demand. Then, because the cost of producing crude oil is skyrocketing, and companies are now going to put up the price even more to cover the higher costs. The only thing that will hold oil prices at the current levels in the near future is oil production and demand. Which means that the oil companies will continue to cut back on production and the price of oil will continue to drop.
Which means that we will continue to see crude oil prices fall, which means that we will see oil companies cutting back production, which means that we will see oil prices rise. Which means that we will continue to see crude oil prices plunge, which means that we will continue to see oil companies producing more crude oil, which means that we will continue to see oil prices rise.
So, it all comes down to this: We’re going to have to watch the price of oil plunge.