Saturday, December 1, 2007

Oil Watch: 11/26/07 - 12/01/07 Prices, Causes, and Effects

Closing price: $90.05 per barrel (down)
National gas average: $3.07 (down)

Expect oil prices to stay steady or even drop, unless prices hit $100. Most likely though, oil will drop as production is expected to increase.

1. Weak dollar (again)
Yes, this is essentially permanent. A lower dollar makes oil cheaper in countries that use other currencies.
2. OPEC increases production
As we predicted last week.
3. Enbridge pipeline repair
Prices had spiked $4 after the blast

Expect oil to continue heading south, unless the U.S. economy does a total 180 degree turn.


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