from The Sleuth Journal:
Despite enormous levels of public support for alternative energies, we’re still living in a world where changes in oil price create ripples that can be felt at the furthest reaches of civilization. And if the last few months are any indication, a great deal more turmoil may still lie ahead.
The truth is this: Even the agencies whose job it is to predict these kinds of seismic changes have been scratching their heads over oil’s tumultuous price fluctuations. The International Energy Agency (IEA), for example, admits freely that predicting the movements of the oil market over the next five years is incredibly difficult, if not impossible, to do with any degree of accuracy.
The bottom line, though, is simple: The price of crude oil has hit a proverbial rock bottom. As of this writing, the cost per barrel is $34, which is the lowest it’s been in more than ten years.
This, of course, brings us to several important questions.
What Does This Mean for Consumers and Businesses?
Opinions appear to vary somewhat when it comes to the short-term effect spiraling crude prices will have on the average consumer.
Whereas 60% of consumers say they cut back on other expenses when gas prices are high, the opposite tends to hold true when gas prices plummet. Indeed, the last few months have seen a big boost to SUV sales, since they’re now more affordable to keep fueled. It’s the latest example of American shortsightedness.
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