Gas prices are below $3/US gal in our area (below $0.75/l for Canadians). This is caused by over-supply due to fracking, improvements in US automobile fuel mileage, and slow economies in Europe and parts of Asia.
Is this going to last longer than a few months to a few years? Nope.
- They are not making more oil, and it is essential to modern economies.
- Eventually, the world economy will recover and demand will rise.
- The low price will reduce investment in new sources, reducing new supply.
So enjoy it while we can, get out that old gas guzzler, and it is probably a good time to buy oil producer stocks for the long term.
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