Oil has passed $97 on its way down to what some analysts believe will be $90 or less. That would be a reset of more than 15% down over two months. The worry about a battle with Iran over crude sanctions is almost forgotten. So is the belief that a drop in refinery capacity will keep gas prices higher.
And, those prices, based on the average price of a gallon of regular nationwide, have backed down toward $3.75 after a failure to reach a predicted peak above $4. Oil traders, in some large number, think that large supplies of gas in the US and a drop in demand for crude in economically crippled Europe will press prices down even more.
That shows how fast conventional wisdom can change.
Douglas A. McIntyre