Will our walk down memory lane regarding gasoline prices come to an end soon? Will 1990s prices be history?
Leaders of the Organization of Petroleum Exporting Countries — better known as OPEC — certainly hope so.
This week, OPEC leaders agreed to cut oil production by 2.2 million barrels a day, beginning Jan. 1. It is the second major cut since September, but it didn’t phase oil-futures traders much.
The New York price for January delivery of oil fell $2.50 a barrel, to $41.10, immediately after the OPEC announcement.
The slumping economy and sagging demand for oil around the world seem to be doing more than OPEC’s production reductions to drive the price of oil. But that can’t continue indefinitely. Demand is predicted to begin ticking upward sometime next year.
When that happens, and it’s combined with OPEC’s cuts, you can expect to begin paying more at the pumps once more.