When Will the Oil Bubble Burst?
After you receive a nice gift from someone like a shirt or something, did you ever feel like you couldn’t really wear it because you didn’t want anything to happen to it? You wanted to preserve it as long as you could, right? Well, that’s how many people feel about their vehicles now. With the United States facing some serious economic times at the moment, many are trying to do whatever they can to ensure that they don’t have to spend any more money than is necessary. This is, in part, why so many people have turned towards carpooling alternative transportation and utilizing the services of auto transport companies.
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Recently, there has been a dip in oil prices, which has caused the price of gasoline to actually go down during the middle of the summer (kinda’ weird, don’t you think?). However, for many of us who have already been bruised by a slumping economy, we are left wondering how long this reprieve will last before the price of gas goes back up again. According to Physorg.com,
Since 2003, worldwide oil prices have quadrupled. According to a new study, the price of oil is rising at a faster-than-exponential rate, and cannot be sustained. In other words, we’re in the midst of an oil bubble, say researchers Didier Sornette and Ryan Woodard of ETH Zurich in Switzerland and Wei-Xing Zhou of the East China University of Science and Technology in Shanghai, China.
As we have seen with the increase in oil prices at the pumps, less people were inclined to want to fill up their vehicles- hence the sudden increase in people using vehicle shipping services and mass transportation. This drop in demand has now led to what most deem to be a “temporary drop in prices” as far as oil is concerned. But if the price in oil is dropped significantly, say back to $2 a gallon, will demand suddenly increase again, thereby putting a strain on supply? Further, if demand then continues to outweigh supply, when will that oil bubble burst? Some speculate that it has already burst, which is why the prices have gone down now, but I’m not so sure.
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My feeling is that the oil price will continue to go down and between $80.00 and $90.00 at the end of december. This is my feeling.
this mean that I will use my car more often
The price will go back up again at the end of the year and into 2009 might go back down to 3.90 and we will think that would be the deal of the century. This is the investors and oil monopolies game… rising prices so high that if it does dip down, we will think that would be the deal of the century..