Obviously, I'm talking about gasoline and diesel. One dollar a gallon and seven dollars a gallon are a rough variation of what we might be paying for gas and diesel during the next 5 years or so. Even if we go out 10 years the likely variation will be $1 a gallon to $10 a gallon for gas or diesel.
So, if you own a business and have storage tank capacity for your fleet of cars or trucks then buying in fuel bulk is much better the closer to $1 a gallon you get. If it was me I would fill my storage tanks half full now because no one knows if this is the bottom or not. (Some say it is $30 a barrel for oil). However, it is important to realize that many middle eastern producers can't produce with any profit at all for less than $75 a barrel. So how long can they continue to produce at a loss? Sooner or later they might have to stop producing entirely just to stay in business long term unless they are getting government subsidies.
So, if oil really does go to $30 a barrel(it is presently in the $49 range) how many countries will just stop pumping oil? What happens then?
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