The US demand for oil I hear reached a peak awhile ago. It isn't our US demand that drives it, its world demand with China looking to secure oil for its growth. China and instability mostly is driving prices and the markets bend on that demand. A better question is...what would knock the hell out of oil prices? If you have an answer, is it feasible or realistic to occur? If not....this is it for awhile. Their is a drive for the Middle East to keep the price high...they make huge $$$ gains.
I'm not sure that a slowing economy will drop oil much on the world market. It could be a clean bet but there are too many factors that can keep it at this level or higher for awhile.
Now if you want to talk about gasoline....that's another show!
Gasoline at the pump in the US will have a hard time declining.
With our limited ability to refine it, the public will be forced to fill at the current high limits thus draining our pockets of discretionary cash. Supply and demand is beautifully choreographed to maintain a high pump price. Besides that there are laws that protect the price, etc. The government may be the culprit behind many protections or so I hear. Refineries take a long time to build and all those permits have to be signed...no refineries in sight are there?
In Europe they now pay $6-$7 per gallon, they are used to high prices. Can we absorb $5+ gas? How will $3+ gas affect us later? Not too well, I'm sure. When we run out of cash....the slide begins.
Part of the solution would be to have a stable world...but we tend to keep the world slightly off balance don't we?
mb
Market Data 
Markets 
