OPEC announced a cut of 2.2 million barrels a day. (This is more than double the last two cuts.) Did this get prices going in the right direction? No, Grasshopper. The price of oil fell to $40/barrel.

What OPEC is trying to do, [Peter]Beutel [oil analyst at Cameron Hanover] said, is “slowly dry up a pool of available crude oil and, ultimately, it will mean higher prices.”

By Memorial Day, he said, gasoline could be anywhere from 50 cents to $1 a gallon higher than current levels.

Looks like the American consumer is at the root of this disconnect. We are changing buying habits to prepare for the worst depression in a generation. This on top of changing traveling habits in response to high fuel prices and environmental concerns.

This entry was posted on Thursday, December 18th, 2008 at 5:15 pm and is filed under Fuel Price Trends, Gas price, Fuel cost. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.