Current events - Will gas prices continue to Fall?

The cost of oil per barrel has hit its seven month low of $ 58.68. Prices of gas will continue to decrease because we are approaching are the winter season. During winter the prices of gas will decrease because oil companies will start to transition to the cheaper winter mix of gasoline and because the peak driving season has ended. OPEC, one of the largest oil companies, has decided to cut oil production to stabilize oil prices. As these production cuts take effect it will slowly stabilize the oil price and keep it from dropping. The conclusion of the article states that we should not rely on the dropping of gas prices to save money; we should drive more conservatively and set up carpools to conserve fuel and money.

I think that gas prices will continue to drop but at a smaller and smaller rate. I didn't know that oil companies produce cheaper gas during the winter season.

Detailed analysis of changes in oil price from 197...

Equipe Opec

Equipe Opec

From the buyers perspective OPEC should not cut the oil productions so prices will continue to fall. It seems that OPEC is trying to reach the equilibrium price and quantity of oil by decreasing supply to raise the price but reduce the quantity. I agree that we need to use gas more efficiently by using bicycles and buses for transportation.

Bibliography

1.) "www.google.news.com", 2007