Save On Your Gas Bills

Pump prices in the US have been falling. We may see gas prices dropping below $3 a gallon. A massive 51% drop in oil prices has happened since oil topped $147.27 per barrel for light, sweet crude on July 11 this year.

With growing gloom in the economy in the economy, Americans are saving gas by driving less, airlines are grounding their planes, and businesses are slowing down rapidly and going out of business, all these have contributed to a massive contraction in oil demand.

What Do Oil-Producing Nations Do When Oil Prices Go Down?

You have probably guessed correctly. They cut supplies. Or at least that’s their intention.

OPEC, which controls 40% of the world’s oil supply, has brought forward to discuss how to stop the fall in the price of crude. Bringing forward the meeting by almost a month is significant, and it shows how desperate OPEC is in maintaining current oil prices or spiking oil prices upwards.

Some analysts said OPEC could decide to trim output by as much as one million barrels a day in order to halt the slide in oil prices, in addition to a 500,000 barrel per day cut last month.

I share the same sentiments as British Prime Minister Gordon Brown.

“I think it is absolutely scandalous that OPEC is thinking of meeting in the next few days to cut oil production so they can push up the price of oil again…”

Talk about greed of these oil producing nations. Even in depressing times like that, they still have not forgot their profit motive, and continue to plunder the masses and profit at their expense.

One can only hope OPEC will discover their conscience and start thinking not only about amassing their wealth, but to also do their part to stimulate the global economies by keeping oil prices affordable.