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9/5/2008-- Is it over? Was that the oil shock? Can we relax, sit back and expect our energy bills and prices at the pumps to tumble? It is true that the price of oil is down. In early July, the price peaked at $147 a barrel. Yesterday it hit $106. A fall of almost 30% in two months suggests the old rule that "nothing cures high prices like high prices" may finally be working in the oil market.

Americans used less in their cars over the summer: demand in the US fell by 800,000 barrels a day in the first half of this year, the largest decline for 26 years. In the UK, Ryanair is grounding more planes this winter. The global economy is slowing - even China, the biggest source of new demand, may soon be feeling colder breezes. But what's this? Leading members of Opec, the Organization of Petroleum Exporting Countries, want to reduce oil supplies to keep the price high.

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