The relentless fall in oil & gasoline prices seems to have relented. After gasoline (retail US Average) fell 60% from $4.117 in July to $1.65 2 days ago, it's risen 2 days in a row, to $1.663, according to AAA. Wholesale, oil and gasoline have climbed about 10% in a few days. Oil at $46 would have translated into over $2 retail gasoline a few years ago. Today, with the premium seeming to have shifted to diesel, and what looks like permanent excess refining capacity (at least until some refineries break down & don't get fixed), it should still at least mean some increase.
So now the price of gasoline will immediately shoot back to $4, we'll all have to walk to the unemployment office, and the internets will be run by pedal powered generators.
Or not.
This hitting of bottom seems to be more related to the dollar falling a bit than any changes in the oil demand balance. Storage is still filling, consumption is still low. Between now & when post peak panic finally overwhelms the supply line, there are still room for a lot of turns.
Just thought we should make note of this one. Like most people, I'm a little dizzy from all the turns lately. Even theoildrum seems to spend as much time talking about general economic collapse as it does about oil.