The USA has made it through the summer. We’ve gotten a much milder start to the 2006 hurricane season than was predicted, and the “Summer Driving Season” is over, apparently meaning that we will use much, much less gasoline that we do from May through August. In response, gasoline prices have sunk faster than a mob informant being thrown into the East River wearing concrete galoshes. There’s been a lot of talk concerning the source of this drop… everything from “Peak Oil is a garbage theory” to “Demand Destruction in action.”
The real reason? I’m willing to bet that it’s blatant manipulation of the commodities market.
This cannot and will not last forever, so enjoy the cheap gas while you can, and get your Christmas shopping done early. There’s also a drop in Natural Gas prices that will mean a cheaper start to Minnesota’s winter heating season.
Being a cynic, I’m guessing that the window for reality rearing it’s ugly head once again will start around December 1, depending on how cold it gets across the country. Perhaps we’ll be blessed with another mild winter… or then again, maybe not.
Hat tip: Steven Lagavulin at Deconsumption