So there you were, trying to sell your truck because the price of gas was rising like crazy and it was killing your wallet. Your friends dumped their trucks for a huge loss and were glad to do it and they laughed when they saw you still stuck with yours.
But then something funny happened, the price of gas started dropping. In the past month, we’ve seen gas fall fifty cents and more and it’s still dropping. Some areas are seeing gas down close to $2.00 a gallon and then there’s this article in Forbes that makes me smile.
Michael C. Lynch, 51, president of Strategic Energy & Economic Research in Amherst, Mass., predicts oil prices will continue to fall:
New supply, coming online from all corners of the world, is more than ample to satisfy growth in demand and sufficient even to withstand an embargo against Iran, which produces 3.75 million barrels of oil a day. Lynch argues that the threat of disruptions–nuclear brinkmanship, war, terrorism, hurricanes, pipeline corrosion–has larded oil prices with a $20-a-barrel risk premium. As these perils recede, oil prices will fall.
He continues with predictions of gas under $2.00 by next year as more supplies come online.
Makes a person think it might be a good idea to hang on to that truck after all, maybe your friends won’t be smiling when they see a rebound in truck prices, might even be a good time to buy a truck at firesale prices. Yep, makes a person think …