Oil takes a breather

 

Finally, oil prices have started to pull back. After dropping nearly $16 a barrel in the last three days, Thursday’s close had oil back at the $130.00 a barrel level. Of course there are varied ideas about what this means. Those who are still bullish on the price of oil (have long contracts) are suggesting this is simply a normal basing pattern before we see new highs. The bears (short contracts), who have thought for awhile now oil prices had far exceeded the demand, are saying we have seen the highs, at least for the time being.

Me? Well I don’t have the money to buy a full tank for my car, much less be long some contracts so I have to hope the bears have it right. At $4.00 a gallon many Americans are like myself and we are only hoping that we get some relief soon and that it will hopefully last through winter. On that note the price of Natural Gas was also seeing some pull back.

This is good news for the consumer but of course we will not see the price at the pump drop near as fast as we saw it rise. Seems the guy who changes the sign gets lumbago or something on the days he has to lower the prices but is out there at the crack of dawn when he is rising them. Go figure.

Food prices have yet to reflect any sort of oil price decrease. Which of course is expected since a mere 3 day drop does not a correction make. But this is a good sign for now and hopefully rising food prices will be the next thing to follow that.

One can only hope.

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