This may seem like good news for people at the pump, but let’s not forget that even with oil falling to $115 a barrel, it’s still well above where it was just a year ago…and a year before that…and so on.
And as the following graph from The Oil Drum illustrates, prices have dropped over the past
8 7 years, but only momentarily before going back up, up, up.
An average growth of 30% per year over the past
8 7 years. Pretty amazing, no?
Simply put there’s nothing to suggest the bubble has burst yet, and while some say this is due to the basics of supply and demand, I’m still not convinced of that…yet.