Look for gasoline to drop by Thursday
With the latest sell-off on Wall Street and traders doubtful about the US bail-out, it certainly looks more likely that gasoline will experience another huge drop later this week, all under the guise of the interrupter formula.
So far today, gasoline is trading down close on seven cents per litre against a drop in oil prices of close to eight bucks US a barrel.
Seems that the markets are doubtful about the bail-out and thusly, are showing the fears of an economic slowdown in our midst. If there's lower demand because of a slowing economy, there's less use of petroleum products. That means lower prices for you and me.
As to how much things could slow?...
According to Blomberg, Deutsche Bank has cut its 2009 forecast for oil prices another 23% and they figure that the average price of oil could hang under $85 US a barrel for the remainder of the year ahead.
Just keep cutting boys, just keep cutting!...
In the meantime, hold back on any major purchases of gas at the pumps. I'll have a better prediction on exactly how much it'll be going down as early as tomorrow morning. Be looking for that.