the cost of oil has dropped almost $10 per barrel since Monday? Hmmmmmmmmm. Wonder what that's all about?

AAA reported that fewer people were traveling for the holidays. Supply and demand? Or McCain needs help to get elected???? Who knows?????

I think it's about speculators buying oil and never taking delivery of it meaning the price had little to do with current supply and demand or perhaps even a realistic or reasonable picture of supply and demand in the future, but it had lots to do with a speculative frenzy that as always happens when speculators overrun any market looking to get rich quick on emotional buying versus reasonable, logical and realistic buying. In the construction/real estate market the normal booms and busts were in large part driven by a flood of speculators entering a market that looks hot to cash in and get rich quick. Usually by the time the bulk of speculators arrive, the peak money making opportunities are past or they quickly pass because of speculators overbuilding and flooding the market destroying the goose they think is gooing to lay a golden egg for them. Some get away with big bucks, many get left holding the bag. If people are going to invest based on speculation, it would appear the best time to do it is long before you hear others talking about what a good investment what you have invested in is.

If the supply and demand, current or future, is the "impetus" or catalyst for high oil prices a drop in current demand (it was already dropping as prices were rising) is also likely to affect speculation on future demand. If people conserve, the demand goes down, now and in the future (if we stick to conserving) and those speculating they could get lots of bucks for oil in the future based on a high demand and limited supplies, realize that without the prospects for a future demand and short supplies, the oil of the future will not be as valuable as they speculated it would be.

I noticed around here for a while, every time there was even a hint about oil going up, the cost of gasoline went up, UNTIL the last week and a half or two weeks as oil climbed over $140 a barrel then higher. Few if any gas stations raised their prices.

Heating oil fuel companies are lining up pre-buys and in this area they want $5.09 a gallon for a set pre-buy $5.19 a gallon if one spreads their fuel bill across 12 months.

In the past the pre-buys have ended up being the smart choice, this year there are hints that the price of oil is hitting a ceiling here because of such a rapid rise over such a short period.

The good part about high oil prices is that people conserve or become innovative. Hopefully if relief comes they will retain enough memory to have learned something from this experience and continue to conserve and work on innovative ideas for alternatives.

Stay well Shirley.

: )

Musta been some new drilling in the last few days.