Wednesday, October 22, 2008

Weekly oil price

I found this graph to be pretty shocking. I am not sure if I am happy about it because it will cut the cost of my drive across country in half, or angry because it will make my job hunt more difficult.

It is hard to say what it means in any long term sense. The price of oil has cut in half in about a three month period. I haven't seen much convincing evidence that anything changed on the supply side, so it is probably just panic because of the economy driving down demand. It is also not unusual for the economy to improve before a presidential election. Usually the party in power has a lot of incentive to make sure things are getting better rather than worse on election day. Although given the complete disaster of the past few months that trend does not seem to be going as well as usual.

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