Oil Prices Even Out

A drop in oil prices is a big concern to many around the world this morning. Three consecutive days of sharp drops were only slightly negated by a rebound this morning, which was caused by some issues in Nigeria. With demand dropping, oil prices could easily collapse. And some countries are relying solely upon the high oil prices and the Americans who buy it to support their whole economy.

If oil prices don't rebound next week, I would expect to hear talk about production cutbacks. The simple fact is that many of these countries can't afford oil to cheapen. If there's even the slightest hint that they may be oversaturating the market, they will pullback immediately. Essentially what this means is that $3.50 - $4.00 gas is here to stay unless the United States completely revamps their energy policy. Which has turned more into a political issue than an actual problem that anyone wants to solve.

Of course if you listen to the rhetoric of the blowhard Al Gore, you would see that there is no compromise possible and the only energy policy the US can pursue is one in which everyone suffers. Suggesting we have a mere 10 years to come up with a carbon-free energy policy is ridiculous. But I would expect nothing less from Gore who claimed 3 years ago that the world only had 10 years left...but now he has 10 years to come up with a new energy policy. Yep, it's a shame we didn't elect that guy...