Russ Steele
While the price of crude oil continues to drop, Barrons is predicting that it will soon be at $150.00 a barrel, while CARB constinues to work on California's Low Carbon Fuel Standard, which is designed to reduce CO2 emissions by 10% in 2020. The LCFS when implemented in 2012 will increase the cost of fuel, this cost will be added to the projected rise in crude oil prices by Barrons.
The U.S. economy is never completely ready for higher oil prices, which is one reason they take a nasty economic toll when they arrive. But readiness can be enhanced by awareness of the likely outlook for petroleum prices–and the outlook today is relatively grim, although probably not disastrous.
Despite the recent 20% decline from April highs, new highs on crude, heating oil, diesel fuel, jet fuel and gasoline seem likely over the next 12 months. Following some further easing over the summer, the second leg of the long-term bull market in petroleum–the first occurred in 2007-08–probably will begin this fall.
Regardless the fuel prices continue to drop in the Nevada County, California and the US this last week. Here are the latest fuel price plots:
Exit question: When will the falling prices reverse direction and start climbing again?
