A couple years ago, a buddy asked what it would take for oil prices to go back down. My answer at the time was “global economic slowdown.” That seems correct. Or as Mr. Bingley said this morning,
OPEC Cuts Production
And oil drops to $64 a barrel.
That tells you how concerned folks are about the demand side.
OPEC agreed to cut 1.5MM BPD, and the price drop was about $5/barrel. We’ll see how well OPEC can manage that cut.
Gasoline futures are now at $1.46/gallon. If that holds, folks in the Southeast should expect to see prices continue to plummet. If that price holds, then average prices in Virginia and South Carolina will quickly be in the $2 to $2.25 range.

