Our new Marketplace Crash Course is here to help. Sign-up for free, learn at your own pace.
TEXT OF STORY
Scott Jagow: But the price of oil has fallen $6 this week. It’s at $127 a barrel this morning. I wouldn’t get too excited, but there is reason to think the price drop might stick. Here’s Jeremy Hobson.
Jeremy Hobson: Analyst Tom Kloza at the Oil Price Information Service says just look at the calendar. For 23 of the last 26 years, he says, the peak in oil prices has come right before Memorial Day.
Tom Kloza: History’s on our side here, although this has been a year that’s thrown us quite a few head-fakes. So it’s a little bit premature to say that maybe that big bull run for the first part of 2008 is over.
Now, there are all sorts of things that drive the price of oil. The strength of the dollar, speculation, and lately, dropping demand in the U.S.
Kloza: We’re also getting the sense now that maybe the rest of the world is slowing down a little bit as well — $135 for crude was an awfully high number.
In other words, don’t think of this as the start of a bear market — rather, a correction. In terms of what’s ahead, Kloza says:
Kloza: I expect chaos, but I’m tired and I would really welcome some order right now.
In Washington, I’m Jeremy Hobson for Marketplace.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.