Oil plunged below $52 a barrel Thursday to its lowest price since May 2005, extending a sharp decline that has been led by dampened heating oil demand, but which could save consumers money on a more widely used fuel: gasoline.But don't worry, $100 gasoline will solve all of the problems caused by cheap oil.
Crude oil has tumbled by 15 percent so far this year in a huge sell-off that was kicked off by investment funds last year, and then stoked by a historically warm U.S. winter that has left supplies of heating fuel barely touched.
(Interestingly, the oil companies were mostly up today.)
2 comments:
That analysts are attributing the fall of oil prices to the warm weather is interesting, since heating oil only accounts for ~7% of oil use in America during the winter.
But it's still 25% of a barrel of crude as a fraction of yield. This looks like a bunch of refiners got caught on the wrong side of the crack spread.
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