January 20th, 2009 → 11:47 pm @ MReed // No Comments
US markets were closed on Monday to celebrate Martin Luther King Jr.’s birthday, but oil fell below thirty-five dollars per barrel in European markets amidst concerns over reduced damage and recession issues. The issues that have been taking place in Gaza and Israel, as well as problems with Russia and the Ukraine have also affected the price of oil.
Any jump in prices in the future would be slowed because of the reserves of oil that have been built up around the world. Many countries have higher oil reserves than they did just six months ago because consumer demand for oil is still down. When gasoline prices fell so sharply the demand for gasoline did not increase to previous levels, and that meant that the prices of oil and gasoline stayed down instead of rebounding quickly.
If the demand for oil does not rise any time in the near future the prices of oil and gasoline could continue to fall some, but they will likely not go much lower than they already are, especially where gasoline prices at the pump are concerned.
Tags: crude oil, oil, oil prices