Oversupply coupled with weak demand explains collapsing gasoline prices.

http://www.usatoday.com/story/money/columnist/bartiromo/2015/01/11/bartiromo-saudi-prince-alwaleed-oil-100-barrel/21484911/

From the article:

Q: What is moving prices? Is this a supply or a demand story? …….

A: It is both. We have an oversupply. …….  So, there’s oversupply in the market. But also demand is weak. ……..There’s less demand, and there’s oversupply. And both are recipes for a crash in oil. And that’s what happened. It’s a no-brainer.

Hopefully, this will help spur the rest of America’s economy, and lift us out of the Great Depression II.

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About johnvkaravitis

Senior Financial Analyst: Energy, Insurance, IT consulting, Pharmaceuticals, Publishing, Real Estate
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